Campus Activewear Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Campus Activewear Limited (NSE:CAMPUS) filed its half-year result this time last week. The early response was not positive, with shares down 8.2% to ₹280 in the past week. It looks like a pretty bad result, all things considered. Although revenues of ₹6.7b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 41% to hit ₹0.47 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Campus Activewear

Taking into account the latest results, the most recent consensus for Campus Activewear from eight analysts is for revenues of ₹16.0b in 2025. If met, it would imply a satisfactory 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 37% to ₹4.37. Before this earnings report, the analysts had been forecasting revenues of ₹16.1b and earnings per share (EPS) of ₹4.36 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹318. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Campus Activewear analyst has a price target of ₹390 per share, while the most pessimistic values it at ₹240. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Campus Activewear's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.2% per annum over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Campus Activewear is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. We have forecasts for Campus Activewear going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Campus Activewear's balance sheet, and whether we think Campus Activewear is carrying too much debt, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.