Shareholders in Definitive Healthcare Corp. (NASDAQ:DH) had a terrible week, as shares crashed 34% to US$3.23 in the week since its latest annual results. Revenues came in at US$252m, in line with forecasts and the company reported a statutory loss of US$3.54 per share, roughly in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Definitive Healthcare

Following the recent earnings report, the consensus from ten analysts covering Definitive Healthcare is for revenues of US$235.4m in 2025. This implies a measurable 6.7% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 93% to US$0.25. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$241.2m and losses of US$0.17 per share in 2025. While this year's revenue estimates dropped there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target was broadly unchanged at US$5.10, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the 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. The most optimistic Definitive Healthcare analyst has a price target of US$7.00 per share, while the most pessimistic values it at US$3.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.7% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.7% annually for the foreseeable future. It's pretty clear that Definitive Healthcare's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Definitive Healthcare. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Definitive Healthcare. 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 Definitive Healthcare going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Definitive Healthcare , and understanding them should be part of your investment process.

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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.