Earnings Update: Eicher Motors Limited (NSE:EICHERMOT) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Eicher Motors Limited (NSE:EICHERMOT) had a good week, as its shares rose 2.1% to close at ₹4,884 following the release of its quarterly results. It was a workmanlike result, with revenues of ₹46b coming in 3.7% ahead of expectations, and statutory earnings per share of ₹40.06, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Eicher Motors after the latest results.

View our latest analysis for Eicher Motors

Taking into account the latest results, Eicher Motors' 31 analysts currently expect revenues in 2025 to be ₹183.2b, approximately in line with the last 12 months. Per-share earnings are expected to increase 6.4% to ₹166. In the lead-up to this report, the analysts had been modelling revenues of ₹184.3b and earnings per share (EPS) of ₹166 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹4,909, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Eicher Motors analyst has a price target of ₹5,748 per share, while the most pessimistic values it at ₹3,499. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Eicher Motors' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Eicher Motors is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Eicher Motors' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹4,909, 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 Eicher Motors analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.