CIE Automotive India Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

CIE Automotive India Limited (NSE:CIEINDIA) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. CIE Automotive India missed revenue estimates by 3.5%, coming in at₹23b, although statutory earnings per share (EPS) of ₹5.72 beat expectations, coming in 7.9% ahead of analyst estimates. 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. 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 CIE Automotive India

Following the latest results, CIE Automotive India's six analysts are now forecasting revenues of ₹95.8b in 2024. This would be a satisfactory 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to ₹24.10. Before this earnings report, the analysts had been forecasting revenues of ₹98.7b and earnings per share (EPS) of ₹24.78 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹634 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 CIE Automotive India analyst has a price target of ₹675 per share, while the most pessimistic values it at ₹530. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CIE Automotive India's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of CIE Automotive India'shistorical trends, as the 7.4% annualised revenue growth to the end of 2024 is roughly in line with the 6.6% 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 10% per year. So although CIE Automotive India is expected to maintain its revenue growth rate, it's forecast to grow slower than 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 CIE Automotive India. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹634, 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 CIE Automotive India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CIE Automotive India analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for CIE Automotive India that you need to be mindful of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com