Earnings Miss: Apollo Tyres Limited Missed EPS By 19% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Apollo Tyres Limited (NSE:APOLLOTYRE) released its quarterly result to the market. The early response was not positive, with shares down 8.3% to ₹492 in the past week. Revenues were in line with forecasts, at ₹63b, although statutory earnings per share came in 19% below what the analysts expected, at ₹4.76 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Apollo Tyres

Taking into account the latest results, the consensus forecast from Apollo Tyres' 28 analysts is for revenues of ₹272.1b in 2025. This reflects a solid 8.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.4% to ₹27.27. Before this earnings report, the analysts had been forecasting revenues of ₹273.3b and earnings per share (EPS) of ₹30.92 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹542, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Apollo Tyres, with the most bullish analyst valuing it at ₹640 and the most bearish at ₹410 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Apollo Tyres shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Apollo Tyres'historical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Apollo Tyres is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Apollo Tyres. 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 ₹542, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Apollo Tyres going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Apollo Tyres' balance sheet, and whether we think Apollo Tyres is carrying too much debt, for free 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.