Earnings Report: Sunteck Realty Limited Missed Revenue Estimates By 31%
Last week, you might have seen that Sunteck Realty Limited (NSE:SUNTECK) released its first-quarter result to the market. The early response was not positive, with shares down 2.9% to ₹303 in the past week. Revenues ₹1.9b fell badly short of expectations, missing analyst targets by 31%. Statutory earnings per share (EPS) of ₹2.88 performed better, coming in 2.9% above analyst models. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sunteck Realty after the latest results.
Taking into account the latest results, the most recent consensus for Sunteck Realty from twelve analysts is for revenues of ₹14.6b in 2027. If met, it would imply a major 29% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 32% to ₹19.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹15.0b and earnings per share (EPS) of ₹18.93 in 2027. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
View our latest analysis for Sunteck Realty
The average price target was steady at ₹505even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sunteck Realty analyst has a price target of ₹609 per share, while the most pessimistic values it at ₹379. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Sunteck Realty's growth to accelerate, with the forecast 41% annualised growth to the end of 2027 ranking favourably alongside historical growth of 18% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sunteck Realty to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at ₹505, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sunteck Realty going out to 2029, 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 1 warning sign with Sunteck Realty , and understanding this 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.