Revenue Beat: TVS Motor Company Limited Exceeded Revenue Forecasts By 18% And Analysts Are Updating Their Estimates

TVS Motor Company Limited (NSE:TVSMOTOR) shareholders are probably feeling a little disappointed, since its shares fell 9.8% to ₹2,450 in the week after its latest second-quarter results. It was a mildly positive result, with revenues exceeding expectations at ₹113b, while statutory earnings per share (EPS) of ₹35.50 were in line with analyst forecasts. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for TVS Motor

Following the recent earnings report, the consensus from 37 analysts covering TVS Motor is for revenues of ₹365.5b in 2025. This implies a not inconsiderable 13% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 44% to ₹57.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹358.6b and earnings per share (EPS) of ₹56.73 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 ₹2,607, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values TVS Motor at ₹3,350 per share, while the most bearish prices it at ₹1,630. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would highlight that revenue is expected to reverse, with a forecast 24% annualised decline to the end of 2025. That is a notable change from historical growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TVS Motor is expected to lag the wider industry.

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 TVS Motor's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹2,607, 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 forecasts for TVS Motor going out to 2027, 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 2 warning signs for TVS Motor (1 is a bit unpleasant!) 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.