Alignment Healthcare, Inc. (NASDAQ:ALHC) just released its latest quarterly results and things are looking bullish. Results overall were solid, with revenues arriving 4.4% better than analyst forecasts at US$927m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.05 per share, were 4.4% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Alignment Healthcare’s ten analysts are now forecasting revenues of US$3.78b in 2025. This would be a substantial 26% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 19% from last year to US$0.37. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.75b and losses of US$0.37 per share in 2025.
See our latest analysis for Alignment Healthcare
The consensus price target was unchanged at US$18.22, 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. The most optimistic Alignment Healthcare analyst has a price target of US$22.00 per share, while the most pessimistic values it at US$9.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It’s clear from the latest estimates that Alignment Healthcare’s rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 30% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Alignment Healthcare is expected to grow much faster than its industry.
