Triveni Turbine Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's shaping up to be a tough period for Triveni Turbine Limited (NSE:TRITURBINE), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with ₹4.9b revenue coming in 9.0% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.68 missed the mark badly, arriving some 33% below what was expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Triveni Turbine's nine analysts is for revenues of ₹23.9b in 2027. This would reflect a reasonable 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 8.0% to ₹10.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.3b and earnings per share (EPS) of ₹11.83 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Triveni Turbine
The consensus price target held steady at ₹674, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Triveni Turbine, with the most bullish analyst valuing it at ₹840 and the most bearish at ₹510 per share. 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.
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. It's pretty clear that there is an expectation that Triveni Turbine's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that Triveni Turbine is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Triveni Turbine. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Triveni Turbine's revenue is expected to perform worse 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 Triveni Turbine analysts - 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 2 warning signs for Triveni Turbine (1 is concerning) you should be aware of.
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