Results: LG Electronics India Limited Exceeded Expectations And The Consensus Has Updated Its Estimates
It's been a good week for LG Electronics India Limited (NSE:LGEINDIA) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.0% to ₹1,730. The result was positive overall - although revenues of ₹72b were in line with what the analysts predicted, LG Electronics India surprised by delivering a statutory profit of ₹9.62 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from LG Electronics India's 26 analysts is for revenues of ₹281.4b in 2027. This reflects a decent 9.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 24% to ₹33.30. In the lead-up to this report, the analysts had been modelling revenues of ₹279.9b and earnings per share (EPS) of ₹32.60 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for LG Electronics India
There's been no major changes to the consensus price target of ₹1,785, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic LG Electronics India analyst has a price target of ₹2,009 per share, while the most pessimistic values it at ₹1,420. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 LG Electronics India's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.7% per annum over the past year. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that LG Electronics India is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LG Electronics India's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹1,785, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on LG Electronics India. Long-term earnings power is much more important than next year's profits. We have forecasts for LG Electronics India going out to 2029, and you can see them free on our platform here.
You can also see our analysis of LG Electronics India's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.