LMW Limited Just Recorded A 15% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in LMW Limited (NSE:LMW) had a good week, as its shares rose 2.9% to close at ₹16,654 following the release of its quarterly results. Revenues missed the mark, coming in 17% below forecasts, at ₹7.7b. Statutory profits were better overall though, with per-share profits of ₹22.90 being a notable 15% above what the analysts were modelling. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for LMW

Following the recent earnings report, the consensus from dual analysts covering LMW is for revenues of ₹31.6b in 2025. This implies a not inconsiderable 13% decline in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹185, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹35.0b and earnings per share (EPS) of ₹316 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 17% to ₹11,270.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 24% by the end of 2025. This indicates a significant reduction from annual growth of 25% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - LMW is expected to lag 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 LMW. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LMW's future valuation.

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

And what about risks? Every company has them, and we've spotted 3 warning signs for LMW (of which 1 shouldn't be ignored!) you should know about.

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.