Investors in InnovAge Holding Corp. (NASDAQ:INNV) had a good week, as its shares rose 4.5% to close at US$6.06 following the release of its quarterly results. Revenues came in at US$205m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$0.04 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on InnovAge Holding after the latest results.

Taking into account the latest results, the consensus forecast from InnovAge Holding's four analysts is for revenues of US$847.5m in 2025. This reflects an okay 7.8% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 46% to US$0.063. Before this latest report, the consensus had been expecting revenues of US$844.2m and US$0.024 per share in losses. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Although the analysts are now forecasting higher losses, the average price target rose 17% to 6, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that InnovAge Holding's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.5% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that InnovAge Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple InnovAge Holding analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of InnovAge Holding's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.