Amber Enterprises India Limited Recorded A 12% Miss On Revenue: Analysts Are Revisiting Their Models

It's shaping up to be a tough period for Amber Enterprises India Limited (NSE:AMBER), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It looks like a weak result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹7.6b missed by 12%, and statutory earnings per share of ₹7.99 fell short of forecasts by 4.9%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Amber Enterprises India

Taking into account the latest results, the consensus forecast from Amber Enterprises India's eleven analysts is for revenues of ₹50.0b in 2022, which would reflect a substantial 82% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 220% to ₹68.90. In the lead-up to this report, the analysts had been modelling revenues of ₹50.1b and earnings per share (EPS) of ₹68.38 in 2022. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,499. 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 Amber Enterprises India, with the most bullish analyst valuing it at ₹3,117 and the most bearish at ₹1,525 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Amber Enterprises India's rate of growth is expected to accelerate meaningfully, with the forecast 82% revenue growth noticeably faster than its historical growth of 18%p.a. 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 21% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Amber Enterprises India 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at ₹2,499, 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 Amber Enterprises India. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Amber Enterprises India going out to 2024, and you can see them free on our platform here..

Even so, be aware that Amber Enterprises India is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. 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.
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