These Analysts Think Campus Activewear Limited's (NSE:CAMPUS) Earnings Are Under Threat

Market forces rained on the parade of Campus Activewear Limited (NSE:CAMPUS) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the six analysts covering Campus Activewear are now predicting revenues of ₹15b in 2024. If met, this would reflect a satisfactory 5.0% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹17b in 2024. The consensus view seems to have become more pessimistic on Campus Activewear, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Campus Activewear

We'd point out that there was no major changes to their price target of ₹324, suggesting the latest estimates were not enough to shift their view on the value of the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Campus Activewear's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 2.3% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually for the foreseeable future. Although Campus Activewear's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Campus Activewear after the downgrade.

Hungry for more information? We have estimates for Campus Activewear from its six analysts out until 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.