Earnings Update: Endurance Technologies Limited (NSE:ENDURANCE) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
Endurance Technologies Limited (NSE:ENDURANCE) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Endurance Technologies beat revenue expectations by 4.6%, at ₹43b. Statutory earnings per share (EPS) came in at ₹17.38, some 4.5% short of analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Endurance Technologies' 14 analysts is for revenues of ₹177.1b in 2027. This reflects a decent 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 17% to ₹80.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹171.3b and earnings per share (EPS) of ₹81.54 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
See our latest analysis for Endurance Technologies
It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹3,039, implying that the uplift in revenue is not expected to greatly contribute to Endurance Technologies's valuation in the near term. 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. There are some variant perceptions on Endurance Technologies, with the most bullish analyst valuing it at ₹3,380 and the most bearish at ₹2,540 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Endurance Technologies is an easy business to forecast or the the analysts are all using similar assumptions.
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 analysts are definitely expecting Endurance Technologies' growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Endurance Technologies to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.
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 Endurance Technologies analysts - going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our 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.