IHH Healthcare Berhad (KLSE:IHH) announced its third quarter results last week. We wanted to see how the business is performing and what industry forecasters think about the company following this report. Results appear to be mixed. Although sales were slightly below analysts' expectations of RM5.6 billion, statutory profit was in line with expectations at RM0.34 per share. Earnings results are an important time for investors as they can track a company's performance, see what analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've collected the latest statutory forecasts to see if the analysts have changed their earnings model following these results.
Check out our latest analysis for IHH Healthcare Berhad.
Following the latest results, the 20 analysts covering IHH Healthcare Berhad now predict its 2025 revenue of RM25.1b. If achieved, this would reflect a significant 9.3% improvement in earnings compared to the previous 12 months. Statutory earnings per share for the period is expected to increase 22% to RM0.23. Prior to this report, analysts had modeled 2025 sales of RM24.6 billion and earnings per share (EPS) of RM0.23. So it appears that sentiment has risen modestly following the latest results. Both sales and earnings per share forecasts for next year have been revised upward.
Despite these increases, the analysts have not made any major changes to their price target of RM7.97, suggesting that the increase in estimates is unlikely to have a long-term impact on the stock's value. . It may also be useful to examine the range of analysts' estimates to assess how different the outlier's opinion is from the average. Currently, the most bullish analyst values IHH Healthcare Berhad's stock at RM9.10 per share, while the most bearish values it at RM7.10. A narrow spread of estimates can suggest that the business' prospects are relatively easy to assess, or that the analysts have a strong view on its prospects.
You can also look at the bigger picture, including how these forecasts compare to past performance and whether forecasts are more or less bullish compared to other companies in its industry. It's clear that IHH Healthcare Berhad's revenue growth is expected to slow significantly, with its revenue expected to grow at an annualized rate of 7.4% to the end of 2025. This compares to a historical growth rate of 11% over the past five years. Compare this to 13 other companies in the same industry covered by analysts. These companies are expected to have revenue growth of 7.6% per year. Considering the expected growth slowdown, it appears that IHH Healthcare Berhad is expected to grow at about the same pace as the broader industry.
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