CEAT Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for CEAT Limited (NSE:CEATLTD) shareholders, because the company has just released its latest annual results, and the shares gained 7.7% to ₹3,332. Revenues of ₹132b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹117, missing estimates by 7.8%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 3 warning signs investors should be aware of before investing in CEAT. Read for free now.

After the latest results, the 15 analysts covering CEAT are now predicting revenues of ₹154.3b in 2026. If met, this would reflect a solid 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 59% to ₹186. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹149.9b and earnings per share (EPS) of ₹179 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for CEAT

Despite these upgrades,the analysts have not made any major changes to their price target of ₹3,407, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic CEAT analyst has a price target of ₹4,021 per share, while the most pessimistic values it at ₹2,362. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 CEAT'shistorical trends, as the 17% annualised revenue growth to the end of 2026 is roughly in line with the 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.6% per year. So it's pretty clear that CEAT is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CEAT's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹3,407, 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. We have estimates - from multiple CEAT analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with CEAT , and understanding them should be part of your investment process.

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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.