WeWork India Management Limited Just Recorded A 5.8% Revenue Beat: Here's What Analysts Think
Last week, you might have seen that WeWork India Management Limited (NSE:WEWORK) released its second-quarter result to the market. The early response was not positive, with shares down 3.0% to ₹641 in the past week. Results overall were respectable, with statutory earnings of ₹5.40 per share roughly in line with what the analysts had forecast. Revenues of ₹7.7b came in 5.8% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the eight analysts covering WeWork India Management are now predicting revenues of ₹32.0b in 2027. If met, this would reflect a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 52% to ₹10.80. Before this earnings report, the analysts had been forecasting revenues of ₹30.6b and earnings per share (EPS) of ₹14.37 in 2027. So it's pretty clear the analysts have mixed opinions on WeWork India Management after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.
Check out our latest analysis for WeWork India Management
There's been no major changes to the price target of ₹889, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. There are some variant perceptions on WeWork India Management, with the most bullish analyst valuing it at ₹995 and the most bearish at ₹791 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting WeWork India Management is an easy business to forecast or the the analysts are all using similar assumptions.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 31% growth on an annualised basis. That is in line with its 31% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 24% annually. So although WeWork India Management 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. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on WeWork India Management. Long-term earnings power is much more important than next year's profits. We have forecasts for WeWork India Management going out to 2029, and you can see them free on our platform here.
You can also see our analysis of WeWork India Management's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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