Investors in Lifestance Health Group Co., Ltd.'s (NASDAQ:LFST) will be rubbing its hands together today after its stock price rose 25% to US$7.79 in the week following the release of its annual results. Statutory results were mixed overall, with revenue of US$1.1 billion in line with analyst estimates, but loss per share of US$0.51, about 6.5% higher than analysts expected. Analysts typically update their forecasts with each earnings report, and we can use their forecasts to determine whether their view of the company has changed or if there are any new concerns to be aware of. . So we've gathered the latest post-earnings forecasts to see what expectations suggest for next year.
Check out our latest analysis for LifeStance Health Group.
Following the latest results, the 7 analysts covering LifeStance Health Group are now predicting revenues of US$1.21b in 2024. If achieved, this would reflect a significant 15% improvement in earnings compared to the previous 12 months. Losses are expected to decrease significantly, shrinking by 41% to US$0.29. Before this latest report, the consensus had been expecting revenue of US$1.2b and loss of US$0.29 per share. So it seems the latest consensus release has modestly increased analyst sentiment, given the upward revision to this year's loss per share forecast.
These new estimates push the consensus price target up 10% to US$8.50, and the lower expected loss suggests things could turn around for LifeStance Health Group. The consensus price target is just the average of the individual analyst targets, so it's useful to see how wide the range of underlying forecasts is. There are varying opinions on LifeStance Health Group, with the most bullish analyst valuing it at US$10.00 per share, and the most bearish pricing it at US$8.00 per share. 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.
One way to get more context about these forecasts is to compare them to their past performance and to the performance of other companies in the same industry. We would like to emphasize that LifeStance Health Group's revenue growth is expected to slow, with the expected annual growth rate of 15% through the end of 2024 being significantly lower than the historical annual growth rate of 29% over the past three years. I think. Consider this alongside other companies in the industry covered by analysts. These companies are expected to see their revenues (in aggregate) grow by 6.8% per year. Despite the forecast slowdown in growth, it's clear that LifeStance Health Group is also expected to grow faster than the broader industry.
conclusion
Most importantly, the analysts reaffirmed their loss per share forecasts for next year. Fortunately, there are no major changes to revenue forecasts, and the business is still expected to grow faster than the broader industry. The price target has also been significantly increased, with analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we can't jump to any conclusions about LifeStance Health Group. Long-term profitability is far more important than next year's profits. His forecasts to 2026 from multiple LifeStance Health Group analysts are available for free on our platform here.
Before you take the next step, you need to know the following: 2 warning signs for LifeStance Health Group What we discovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
