Earnings Miss: Cera Sanitaryware Limited Missed EPS By 18% And Analysts Are Revising Their Forecasts

Cera Sanitaryware Limited (NSE:CERA) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Cera Sanitaryware missed earnings this time around, with ₹4.5b revenue coming in 4.6% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹35.52 also fell short of expectations by 18%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Cera Sanitaryware

After the latest results, the twelve analysts covering Cera Sanitaryware are now predicting revenues of ₹22.0b in 2026. If met, this would reflect a solid 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to ₹208. Before this earnings report, the analysts had been forecasting revenues of ₹22.7b and earnings per share (EPS) of ₹219 in 2026. 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.

The consensus price target fell 6.2% to ₹7,922, with the weaker earnings outlook clearly leading valuation estimates. 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 Cera Sanitaryware analyst has a price target of ₹9,904 per share, while the most pessimistic values it at ₹6,253. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cera Sanitaryware shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Cera Sanitaryware'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. It's clear that while Cera Sanitaryware's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cera Sanitaryware. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Cera Sanitaryware's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Cera Sanitaryware analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Cera Sanitaryware is showing 1 warning sign in our investment analysis , you should know about...

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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.