Jyoti CNC Automation Limited Just Missed EPS By 10%: Here's What Analysts Think Will Happen Next
Jyoti CNC Automation Limited (NSE:JYOTICNC) shareholders are probably feeling a little disappointed, since its shares fell 6.6% to ₹801 in the week after its latest first-quarter results. It was not a great result overall. Although revenues beat expectations, hitting ₹5.1b, statutory earnings missed analyst forecasts by 10%, coming in at just ₹2.51 per share. 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 Jyoti CNC Automation after the latest results.
Taking into account the latest results, the consensus forecast from Jyoti CNC Automation's dual analysts is for revenues of ₹25.5b in 2027. This reflects a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 18% to ₹16.65. In the lead-up to this report, the analysts had been modelling revenues of ₹25.3b and earnings per share (EPS) of ₹16.00 in 2027. So the consensus seems to have become somewhat more optimistic on Jyoti CNC Automation's earnings potential following these results.
See our latest analysis for Jyoti CNC Automation
The consensus price target rose 20% to ₹871, suggesting that higher earnings estimates flow through to the stock's valuation as well.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Jyoti CNC Automation's growth to accelerate, with the forecast 24% annualised growth to the end of 2027 ranking favourably alongside historical growth of 17% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jyoti CNC Automation to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Jyoti CNC Automation following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Jyoti CNC Automation going out as far as 2029, and you can see them free on our platform here.
It might also be worth considering whether Jyoti CNC Automation's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.