Campus Activewear Limited Just Missed Revenue By 9.5%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Campus Activewear Limited (NSE:CAMPUS), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. Campus Activewear missed analyst forecasts, with revenues of ₹3.4b and statutory earnings per share (EPS) of ₹0.83, falling short by 9.5% and 7.8% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Campus Activewear after the latest results.

View our latest analysis for Campus Activewear

Taking into account the latest results, the current consensus from Campus Activewear's eight analysts is for revenues of ₹16.1b in 2025. This would reflect a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 63% to ₹4.45. Before this earnings report, the analysts had been forecasting revenues of ₹16.4b and earnings per share (EPS) of ₹4.68 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.5% to ₹305, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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 Campus Activewear at ₹390 per share, while the most bearish prices it at ₹240. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Campus Activewear's past performance and to peers in the same industry. The analysts are definitely expecting Campus Activewear's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Campus Activewear analysts - 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.

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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.