Earnings Report: Harsha Engineers International Limited Missed Revenue Estimates By 9.0%

Shareholders might have noticed that Harsha Engineers International Limited (NSE:HARSHA) filed its first-quarter result this time last week. The early response was not positive, with shares down 4.8% to ₹543 in the past week. Harsha Engineers International missed revenue estimates by 9.0%, coming in at₹3.4b, although statutory earnings per share (EPS) of ₹3.96 beat expectations, coming in 4.2% ahead of analyst estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Harsha Engineers International

Taking into account the latest results, the consensus forecast from Harsha Engineers International's four analysts is for revenues of ₹15.4b in 2025. This reflects a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 24% to ₹16.73. In the lead-up to this report, the analysts had been modelling revenues of ₹15.4b and earnings per share (EPS) of ₹15.55 in 2025. So the consensus seems to have become somewhat more optimistic on Harsha Engineers International's earnings potential following these results.

The consensus price target rose 21% to ₹577, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Harsha Engineers International analyst has a price target of ₹660 per share, while the most pessimistic values it at ₹530. This is a very narrow spread of estimates, implying either that Harsha Engineers International is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The analysts are definitely expecting Harsha Engineers International's growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Harsha Engineers International is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Harsha Engineers International's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Harsha Engineers International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Harsha Engineers International going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.