Harsha Engineers International Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Harsha Engineers International Limited (NSE:HARSHA), given that the company fell short of expectations when it released its second-quarter results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹3.5b, statutory earnings missed forecasts by an incredible 20%, coming in at just ₹3.18 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 Harsha Engineers International

Taking into account the latest results, the most recent consensus for Harsha Engineers International from four analysts is for revenues of ₹15.1b in 2025. If met, it would imply a credible 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 9.0% to ₹15.73. In the lead-up to this report, the analysts had been modelling revenues of ₹15.4b and earnings per share (EPS) of ₹16.70 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of ₹568, suggesting the downgrades are not expected to have a long-term impact on Harsha Engineers International's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Harsha Engineers International at ₹610 per share, while the most bearish prices it at ₹550. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Harsha Engineers International is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Harsha Engineers International's past performance and to peers in the same industry. The analysts are definitely expecting Harsha Engineers International's growth to accelerate, with the forecast 14% 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 14% 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Harsha Engineers International. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 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.