Investors in Redcare Pharmacy NV (ETR:RDC) had a good week, as its shares rose 2.9% to close at €127 following the release of its yearly results. Revenues came in at €2.4b, in line with expectations, while statutory losses per share were substantially higher than expected, at €2.27 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Redcare Pharmacy after the latest results.

See our latest analysis for Redcare Pharmacy XTRA:RDC Earnings and Revenue Growth March 14th 2025

Taking into account the latest results, the current consensus from Redcare Pharmacy's twelve analysts is for revenues of €2.96b in 2025. This would reflect a substantial 25% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 60% to €0.90. Before this latest report, the consensus had been expecting revenues of €2.96b and €0.83 per share in losses. So it's pretty clear consensus is mixed on Redcare Pharmacy after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

The consensus price target held steady at €165, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Redcare Pharmacy at €214 per share, while the most bearish prices it at €93.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 25% growth on an annualised basis. That is in line with its 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.9% annually. So it's pretty clear that Redcare Pharmacy is forecast to grow substantially faster than its industry.

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The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €165, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Redcare Pharmacy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Redcare Pharmacy going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Redcare Pharmacy's debt load is appropriate, using our debt analysis tools  on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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