Earnings Update: Campus Activewear Limited (NSE:CAMPUS) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

It's been a good week for Campus Activewear Limited (NSE:CAMPUS) shareholders, because the company has just released its latest full-year results, and the shares gained 8.5% to ₹282. Revenues of ₹14b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹2.93, missing estimates by 3.2%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out 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 ₹16.4b in 2025. If met, it would imply a notable 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 51% to ₹4.43. Before this earnings report, the analysts had been forecasting revenues of ₹16.6b and earnings per share (EPS) of ₹4.54 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.

The consensus price target held steady at ₹284, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Campus Activewear, with the most bullish analyst valuing it at ₹390 and the most bearish at ₹225 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that Campus Activewear's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Compare this to the 332 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it looks like Campus Activewear is forecast to grow at about the same rate as the wider industry.

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. The consensus price target held steady at ₹284, 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 Campus Activewear. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Campus Activewear analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Campus Activewear Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.