Craftsman Automation Limited Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Craftsman Automation Limited (NSE:CRAFTSMAN) shareholders, with the stock dropping 13% to ₹5,231 in the week since its latest second-quarter results. Revenues were in line with forecasts, at ₹12b, although statutory earnings per share came in 14% below what the analysts expected, at ₹27.24 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Craftsman Automation

Taking into account the latest results, the consensus forecast from Craftsman Automation's five analysts is for revenues of ₹57.3b in 2025. This reflects a substantial 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 28% to ₹135. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹49.9b and earnings per share (EPS) of ₹161 in 2025. Although revenues are expected to increase meaningfully, the analysts have acknowledged the cost of growth, given the substantial drop in EPS estimates following the latest report.

The consensus price target was unchanged at ₹5,861, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. There are some variant perceptions on Craftsman Automation, with the most bullish analyst valuing it at ₹7,475 and the most bearish at ₹5,650 per share. 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 Craftsman Automation shareholders.

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. It's clear from the latest estimates that Craftsman Automation's rate of growth is expected to accelerate meaningfully, with the forecast 55% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 30% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Craftsman Automation to grow faster than 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 Craftsman Automation. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Craftsman Automation. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Craftsman Automation analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Craftsman Automation (including 2 which don't sit too well with us) .

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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.