Afya (AFYA) got here out with quarterly earnings of $0.18 per share, in step with the Zacks Consens
Afya (AFYA) got here out with quarterly earnings of $0.18 per share, in step with the Zacks Consensus Estimate. This compares to earnings of $0.20 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
1 / 4 in the past, it was anticipated that this medical schooling firm would publish earnings of $0.09 per share when it truly produced earnings of $0.15, delivering a shock of 66.67%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
Afya, which belongs to the Zacks Colleges trade, posted revenues of $57.57 million for the quarter ended September 2020, surpassing the Zacks Consensus Estimate by 3.79%. This compares to year-ago revenues of $52.15 million. The corporate has topped consensus income estimates 4 occasions during the last 4 quarters.
The sustainability of the inventory’s quick value motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Afya shares have misplaced about 6% for the reason that starting of the 12 months versus the S&P 500’s achieve of 13.6%.
What’s Subsequent for Afya?
Whereas Afya has underperformed the market to date this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking instrument just like the Zacks Rank, which has a powerful monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Afya was blended. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You possibly can see the entire record of at present’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.16 on $57.27 million in revenues for the approaching quarter and $0.68 on $202.82 million in revenues for the present fiscal 12 months.
Buyers needs to be aware of the truth that the outlook for the trade can have a cloth impression on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, Colleges is presently within the backside 31% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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