Cross Country Healthcare, Inc. (NASDAQ:CCRN) investors will be delighted, with the company turning in some strong numbers with its latest results. Cross Country Healthcare delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$329m, some 11% above indicated. Statutory EPS were US$0.53, an impressive 26% ahead of forecasts. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Cross Country Healthcare's eight analysts are now forecasting revenues of US$1.13b in 2021. This would be a notable 18% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 461% to US$1.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$952.0m and earnings per share (EPS) of US$0.70 in 2021. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to US$14.42per share. 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. There are some variant perceptions on Cross Country Healthcare, with the most bullish analyst valuing it at US$17.00 and the most bearish at US$12.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 Cross Country Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cross Country Healthcare is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cross Country Healthcare's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Cross Country Healthcare going out to 2022, and you can see them free on our platform here..
You still need to take note of risks, for example - Cross Country Healthcare has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
This article by Simply Wall St is general in nature. 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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