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

It's been a good week for KEC International Limited (NSE:KEC) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.8% to ₹976. It looks like a pretty bad result, all things considered. Although revenues of ₹51b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 30% to hit ₹3.32 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for KEC International

Taking into account the latest results, the most recent consensus for KEC International from 22 analysts is for revenues of ₹228.6b in 2025. If met, it would imply a solid 9.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 72% to ₹27.28. Before this earnings report, the analysts had been forecasting revenues of ₹227.9b and earnings per share (EPS) of ₹27.98 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹968, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values KEC International at ₹1,162 per share, while the most bearish prices it at ₹760. 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 KEC International shareholders.

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 KEC International's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. 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 KEC International is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for KEC International 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 KEC International (including 1 which makes us a bit uncomfortable) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.