Entertainment Network (India) Limited (NSE:ENIL) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

As you might know, Entertainment Network (India) Limited (NSE:ENIL) recently reported its first-quarter numbers. Results were roughly in line with estimates, with revenues of ₹385m and statutory earnings per share of ₹2.25. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Entertainment Network (India)

Taking into account the latest results, the current consensus, from the five analysts covering Entertainment Network (India), is for revenues of ₹3.53b in 2021, which would reflect a noticeable 7.3% reduction in Entertainment Network (India)'s sales over the past 12 months. Losses are supposed to decline, shrinking 15% from last year to ₹10.00. Before this latest report, the consensus had been expecting revenues of ₹3.83b and ₹9.12 per share in losses. So it's pretty clear consensus is more negative on Entertainment Network (India) after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a per-share loss expectations.

The average price target was broadly unchanged at ₹169, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the 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. The most optimistic Entertainment Network (India) analyst has a price target of ₹186 per share, while the most pessimistic values it at ₹137. This is a very narrow spread of estimates, implying either that Entertainment Network (India) is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with the forecast 7.3% revenue decline a notable change from historical growth of 1.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. It's pretty clear that Entertainment Network (India)'s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at ₹169, 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 Entertainment Network (India). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Entertainment Network (India) going out to 2022, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Entertainment Network (India) .

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