Stock Analysis

Triveni Turbine Limited Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next

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NSEI:TRITURBINE

Triveni Turbine Limited (NSE:TRITURBINE) just released its first-quarter report and things are looking bullish. Triveni Turbine beat earnings, with revenues hitting ₹4.6b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Triveni Turbine

NSEI:TRITURBINE Earnings and Revenue Growth August 9th 2024

Taking into account the latest results, the most recent consensus for Triveni Turbine from eight analysts is for revenues of ₹21.3b in 2025. If met, it would imply a major 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 26% to ₹11.46. In the lead-up to this report, the analysts had been modelling revenues of ₹21.2b and earnings per share (EPS) of ₹11.26 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹706, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Triveni Turbine, with the most bullish analyst valuing it at ₹754 and the most bearish at ₹578 per share. This is a very narrow spread of estimates, implying either that Triveni Turbine is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The analysts are definitely expecting Triveni Turbine's growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Triveni Turbine is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹706, 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 Triveni Turbine. Long-term earnings power is much more important than next year's profits. We have forecasts for Triveni Turbine 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 1 warning sign for Triveni Turbine that you need to be mindful of.

Valuation is complex, but we're here to simplify it.

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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.