Earnings Beat: Bharat Electronics Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Investors in Bharat Electronics Limited (NSE:BEL) had a good week, as its shares rose 4.4% to close at ₹284 following the release of its quarterly results. Revenues ₹46b disappointed slightly, at6.3% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹1.50 coming in 20% above what was anticipated. 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.

Check out our latest analysis for Bharat Electronics

Taking into account the latest results, the current consensus from Bharat Electronics' 13 analysts is for revenues of ₹235.8b in 2025. This would reflect a solid 9.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 2.3% to ₹6.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹235.6b and earnings per share (EPS) of ₹6.28 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹331. 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. Currently, the most bullish analyst values Bharat Electronics at ₹390 per share, while the most bearish prices it at ₹213. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bharat Electronics' past performance and to peers in the same industry. The analysts are definitely expecting Bharat Electronics' growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bharat Electronics to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹331, 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 Bharat Electronics. Long-term earnings power is much more important than next year's profits. We have forecasts for Bharat Electronics going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Bharat Electronics (1 is a bit concerning!) that you need to take into consideration.

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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.