Crompton Greaves Consumer Electricals Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share fell badly short of expectations, coming in at ₹1.11, some 31% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹19b. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Crompton Greaves Consumer Electricals' 28 analysts is for revenues of ₹81.9b in 2026. This reflects a satisfactory 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to ₹8.25. Before this earnings report, the analysts had been forecasting revenues of ₹83.2b and earnings per share (EPS) of ₹9.29 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Check out our latest analysis for Crompton Greaves Consumer Electricals

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹386, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Crompton Greaves Consumer Electricals at ₹470 per share, while the most bearish prices it at ₹305. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Crompton Greaves Consumer Electricals' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Crompton Greaves Consumer Electricals'historical trends, as the 12% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. It's clear that while Crompton Greaves Consumer Electricals' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Crompton Greaves Consumer Electricals. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Crompton Greaves Consumer Electricals going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Crompton Greaves Consumer Electricals , and understanding it should be part of your investment process.

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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.