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

It's been a sad week for Endurance Technologies Limited (NSE:ENDURANCE), who've watched their investment drop 10% to ₹1,930 in the week since the company reported its quarterly result. Revenues were in line with forecasts, at ₹25b, although statutory earnings per share came in 12% below what the analysts expected, at ₹10.99 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Endurance Technologies

Taking into account the latest results, the most recent consensus for Endurance Technologies from twelve analysts is for revenues of ₹102.8b in 2024. If met, it would imply a credible 5.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.8% to ₹46.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹103.6b and earnings per share (EPS) of ₹48.75 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 9.2% to ₹2,014, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. There are some variant perceptions on Endurance Technologies, with the most bullish analyst valuing it at ₹2,300 and the most bearish at ₹1,500 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Endurance Technologies' past performance and to peers in the same industry. It's clear from the latest estimates that Endurance Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Endurance Technologies is expected to grow at about the same rate as 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 Endurance Technologies. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Endurance Technologies going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Endurance Technologies you should be aware 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.