Inox Wind Limited Just Missed EPS By 38%: Here's What Analysts Think Will Happen Next
Inox Wind Limited (NSE:INOXWIND) just released its latest quarterly report and things are not looking great. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹8.1b missed by 13%, and statutory earnings per share of ₹0.37 fell short of forecasts by 38%. 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 Inox Wind after the latest results.
Following the latest results, Inox Wind's four analysts are now forecasting revenues of ₹57.5b in 2027. This would be a major 31% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 78% to ₹3.53. Before this earnings report, the analysts had been forecasting revenues of ₹68.9b and earnings per share (EPS) of ₹4.64 in 2027. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
Check out our latest analysis for Inox Wind
The analysts made no major changes to their price target of ₹112, suggesting the downgrades are not expected to have a long-term impact on Inox Wind's valuation. 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 Inox Wind analyst has a price target of ₹138 per share, while the most pessimistic values it at ₹88.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Inox Wind shareholders.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 43% growth on an annualised basis. That is in line with its 44% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Inox Wind is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Inox Wind's revenue estimates, but industry data suggests that it 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Inox Wind. Long-term earnings power is much more important than next year's profits. We have forecasts for Inox Wind going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Inox Wind that you should be aware of.
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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.