Last week saw the release of the first quarter results of Tabula Rasa HealthCare, Inc. (NASDAQ: TRHC), an important step in the company’s journey to build a stronger business. Sales reached $ 77 million, as expected, although the company reported a statutory loss per share of $ 0.85, slightly lower than analysts’ forecast. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a significant change in the outlook for the company, or if it is like habit. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.
Based on the latest results, the most recent consensus for Tabula Rasa HealthCare of nine analysts is for 2021 revenue of US $ 342.3 million, which, if achieved, would represent a significant increase of 14% of its sales in the last 12 months. The loss per share is expected to decline significantly in the near future, narrowing 25% to US $ 2.92. Prior to this latest report, the consensus expected revenue of $ 341.7 million and $ 2.95 per share in losses.
As a result, there have been no major changes from the consensus price target of US $ 50.14, implying that the company is trading roughly as expected despite ongoing losses. Sticking to a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. Tabula Rasa HealthCare’s most bullish analyst has a price target of US $ 70.00 per share, while the most pessimistic puts it at US $ 40.00. There are certainly different views on the stock, but the range of estimates is not wide enough to imply that the situation is unpredictable, in our opinion.
Another way to view these estimates is in the context of the bigger picture, such as how the forecast compares to past performance and whether the forecast is more or less bullish relative to other companies in the industry. We would like to point out that Tabula Rasa HealthCare’s revenue growth is expected to slow, with the expected annualized growth rate of 19% through the end of 2021 being well below the historic growth of 28% per year over the past five years. . Compare that to the 73 other companies in this industry with analyst coverage, which are expected to grow their revenues by 16% per year. So it’s pretty clear that while Tabula Rasa HealthCare’s revenue growth is expected to slow, it is expected to grow roughly in line with the industry.
The bottom line
The most important thing to remember is that analysts have reconfirmed their estimates of loss per share for next year. Fortunately, there has been no real change in the sales forecast, with activity still expected to grow in line with the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to come to a conclusion on Tabula Rasa HealthCare. Long-term earning power is much more important than next year’s earnings. We have estimates – from several analysts at Tabula Rasa HealthCare – going up to 2025, and you can see them for free on our platform here.
You should always take note of the risks, for example – Tabula Rasa HealthCare has 4 warning signs we think you should be aware.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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