Harsha Engineers International Limited Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

Harsha Engineers International Limited (NSE:HARSHA) defied analyst predictions to release its yearly results, which were ahead of market expectations. Harsha Engineers International beat earnings, with revenues hitting ₹14b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. 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.

See our latest analysis for Harsha Engineers International

Taking into account the latest results, the most recent consensus for Harsha Engineers International from three analysts is for revenues of ₹15.7b in 2024 which, if met, would be a decent 13% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 25% to ₹16.90. Before this earnings report, the analysts had been forecasting revenues of ₹15.5b and earnings per share (EPS) of ₹16.47 in 2024. So the consensus seems to have become somewhat more optimistic on Harsha Engineers International's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.2% to ₹475. 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. The most optimistic Harsha Engineers International analyst has a price target of ₹480 per share, while the most pessimistic values it at ₹469. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Harsha Engineers International's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this to the 182 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while Harsha Engineers International's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Harsha Engineers International analysts - going out to 2025, 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.