CESC Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
As you might know, CESC Limited (NSE:CESC) last week released its latest first-quarter, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 2.9% short of analyst estimates at ₹55b, and statutory earnings of ₹3.03 per share missed forecasts by 5.3%. 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 CESC after the latest results.
Following the latest results, CESC's eleven analysts are now forecasting revenues of ₹214.8b in 2027. This would be a solid 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.6% to ₹12.85. Before this earnings report, the analysts had been forecasting revenues of ₹212.0b and earnings per share (EPS) of ₹12.89 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for CESC
The analysts reconfirmed their price target of ₹212, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values CESC at ₹250 per share, while the most bearish prices it at ₹172. 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 CESC's growth to accelerate, with the forecast 19% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CESC is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.
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 estimates - from multiple CESC analysts - 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 2 warning signs with CESC (at least 1 which is concerning) , and understanding them 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.