CEAT Limited Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Last week saw the newest third-quarter earnings release from CEAT Limited (NSE:CEATLTD), an important milestone in the company's journey to build a stronger business. It was not a great result overall. While revenues of ₹33b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit ₹24.01 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for CEAT

Following the latest results, CEAT's 16 analysts are now forecasting revenues of ₹148.3b in 2026. This would be a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 51% to ₹180. Before this earnings report, the analysts had been forecasting revenues of ₹149.3b and earnings per share (EPS) of ₹193 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹3,365, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. Currently, the most bullish analyst values CEAT at ₹4,004 per share, while the most bearish prices it at ₹2,353. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. It's clear that while CEAT's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CEAT. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹3,365, 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 CEAT. Long-term earnings power is much more important than next year's profits. We have forecasts for CEAT going out to 2027, and you can see them free on our platform here.

Even so, be aware that CEAT is showing 3 warning signs in our investment analysis , you should know about...

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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.