Earnings Miss: MTAR Technologies Limited Missed EPS By 29% And Analysts Are Revising Their Forecasts

The analyst might have been a bit too bullish on MTAR Technologies Limited (NSE:MTARTECH), given that the company fell short of expectations when it released its yearly results last week. Results showed a clear earnings miss, with ₹5.9b revenue coming in 4.1% lower than what the analystexpected. Statutory earnings per share (EPS) of ₹18.24 missed the mark badly, arriving some 29% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for MTAR Technologies

Taking into account the latest results, the most recent consensus for MTAR Technologies from single analyst is for revenues of ₹14.0b in 2025. If met, it would imply a huge 138% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 279% to ₹69.10. In the lead-up to this report, the analyst had been modelling revenues of ₹9.22b and earnings per share (EPS) of ₹44.60 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

As a result, it might be a surprise to see thatthe analyst has cut their price target 13% to ₹2,044, which could suggest the forecast improvement in performance is not expected to last.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting MTAR Technologies' growth to accelerate, with the forecast 138% annualised growth to the end of 2025 ranking favourably alongside historical growth of 28% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect MTAR Technologies to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MTAR Technologies' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of MTAR Technologies' future valuation.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - MTAR Technologies has 1 warning sign we think you should be aware 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.