Investors in Chartwell Retirement Residences (TSE:CSH.UN) had a good week, as its shares rose 2.8% to close at CA$18.27 following the release of its first-quarter results. It was a credible result overall, with revenues of CA$253m and statutory earnings per share of CA$0.086 both in line with analyst estimates, showing that Chartwell Retirement Residences is executing 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chartwell Retirement Residences after the latest results.

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Taking into account the latest results, the consensus forecast from Chartwell Retirement Residences' four analysts is for revenues of CA$1.10b in 2025. This reflects a major 20% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$1.07b and earnings per share (EPS) of CA$0.23 in 2025. The thing that stands out most is that, while there's been a small increase to revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

View our latest analysis for Chartwell Retirement Residences

There's been no real change to the consensus price target of CA$19.78, with Chartwell Retirement Residences seemingly executing in line with expectations. 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 Chartwell Retirement Residences, with the most bullish analyst valuing it at CA$21.00 and the most bearish at CA$18.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Chartwell Retirement Residences is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are Chartwell Retirement Residences' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

At least one of Chartwell Retirement Residences' four analysts has provided estimates out to 2026, which can be seen for free  on our platform here.

Even so, be aware that  Chartwell Retirement Residences is showing  4 warning signs in our investment analysis, and 1 of those is significant...

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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.

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