P3 Health Partners Inc. Just Beat Earnings Expectations: Here’s What Analysts Think Will Happen Next

There’s been a major selloff in P3 Health Partners Inc. (NASDAQ:PIII) shares in the week since it released its third-quarter report, with the stock down 36% to US$2.61. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$396m. P3 Health Partners also reported a statutory profit of US$0.07, which was a nice improvement from the loss that the analysts were predicting. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the two analysts covering P3 Health Partners are now predicting revenues of US$1.69b in 2027. If met, this would reflect a meaningful 8.5% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 29% to US$13.88. Before this latest report, the consensus had been expecting revenues of US$1.70b and US$10.60 per share in losses. So it’s pretty clear the analysts have mixed opinions on P3 Health Partners even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

Check out our latest analysis for P3 Health Partners

With the increase in forecast losses for next year, it’s perhaps no surprise to see that the average price target dipped 32% to US$12.25, with the analysts signalling that growing losses would be a definite concern.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that P3 Health Partners’ revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2027 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.1% per year. Even after the forecast slowdown in growth, it seems obvious that P3 Health Partners is also expected to grow faster 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 P3 Health Partners. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn’t be too quick to come to a conclusion on P3 Health Partners. Long-term earnings power is much more important than next year’s profits. We have analyst estimates for P3 Health Partners going out as far as 2028, and you can see them free on our platform here.

However, before you get too enthused, we’ve discovered 4 warning signs for P3 Health Partners (2 are a bit unpleasant!) that you should be aware of.

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