Hitachi Energy India Limited (NSE:POWERINDIA) Analysts Are Reducing Their Forecasts For This Year

One thing we could say about the analysts on Hitachi Energy India Limited (NSE:POWERINDIA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the three analysts covering Hitachi Energy India are now predicting revenues of ₹44b in 2023. If met, this would reflect a modest 3.1% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to decline 19% to ₹18.20 in the same period. Before this latest update, the analysts had been forecasting revenues of ₹51b and earnings per share (EPS) of ₹45.70 in 2023. Indeed, we can see that the analysts are a lot more bearish about Hitachi Energy India's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Hitachi Energy India

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Hitachi Energy India's rate of growth is expected to accelerate meaningfully, with the forecast 6.2% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.3% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Hitachi Energy India is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Hitachi Energy India's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Hitachi Energy India, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hitachi Energy India analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.