Earnings Beat: Voltas Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, Voltas Limited (NSE:VOLTAS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of ₹49b, some 9.0% above estimates, and statutory earnings per share (EPS) coming in at ₹10.10, 26% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Voltas

After the latest results, the 31 analysts covering Voltas are now predicting revenues of ₹147.2b in 2025. If met, this would reflect a credible 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 93% to ₹26.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹147.3b and earnings per share (EPS) of ₹24.28 in 2025. So the consensus seems to have become somewhat more optimistic on Voltas' earnings potential following these results.

The consensus price target was unchanged at ₹1,415, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Voltas at ₹1,950 per share, while the most bearish prices it at ₹930. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Voltas' revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Voltas.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Voltas following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Voltas' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,415, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Voltas 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 2 warning signs for Voltas that you need to be mindful 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.