Results: IRB Infrastructure Developers Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, IRB Infrastructure Developers Limited (NSE:IRB) just kicked off its latest first-quarter results with some very strong numbers. IRB Infrastructure Developers delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹19b-10% above indicated-and₹0.23-130% above forecasts- respectively 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for IRB Infrastructure Developers

Taking into account the latest results, the current consensus from IRB Infrastructure Developers' six analysts is for revenues of ₹82.8b in 2025. This would reflect a meaningful 8.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 60% to ₹1.62. In the lead-up to this report, the analysts had been modelling revenues of ₹82.3b and earnings per share (EPS) of ₹1.67 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹72.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 IRB Infrastructure Developers analyst has a price target of ₹81.00 per share, while the most pessimistic values it at ₹61.00. This is a very narrow spread of estimates, implying either that IRB Infrastructure Developers 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. It's clear from the latest estimates that IRB Infrastructure Developers' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.2% p.a. over the past five years. 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 IRB Infrastructure Developers is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹72.00, with the latest estimates not enough to have an impact on their price targets.

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

We don't want to rain on the parade too much, but we did also find 2 warning signs for IRB Infrastructure Developers (1 is concerning!) that you need to be mindful of.

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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.