There's been a notable change in appetite for Health Catalyst, Inc. (NASDAQ:HCAT) shares in the week since its third-quarter report, with the stock down 14% to US$1.46. Although revenues of US$56m were in line with analyst expectations, Health Catalyst surprised on the earnings front, with an unexpected (statutory) profit of US$0.53 per share a nice improvement on the losses that the analystsforecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the five analysts covering Health Catalyst provided consensus estimates of US$205.7m revenue in 2027, which would reflect a concerning 24% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 74% to US$0.69. Before this latest report, the consensus had been expecting revenues of US$205.5m and US$0.69 per share in losses.
See our latest analysis for Health Catalyst
The consensus price target was unchanged at US$1.77, suggesting that the business - losses and all - is executing in line with estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Health Catalyst at US$2.00 per share, while the most bearish prices it at US$1.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 20% annualised decline to the end of 2027. That is a notable change from historical growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Health Catalyst is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Health Catalyst's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Health Catalyst going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Health Catalyst you should be aware of.
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