Earnings Miss: Crompton Greaves Consumer Electricals Limited Missed EPS By 5.2% And Analysts Are Revising Their Forecasts

As you might know, Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) recently reported its first-quarter numbers. It looks like the results were a bit of a negative overall. While revenues of ₹21b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.2% to hit ₹2.36 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Crompton Greaves Consumer Electricals

Taking into account the latest results, the most recent consensus for Crompton Greaves Consumer Electricals from 30 analysts is for revenues of ₹83.0b in 2025. If met, it would imply a notable 9.5% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 25% to ₹9.19. Before this earnings report, the analysts had been forecasting revenues of ₹82.6b and earnings per share (EPS) of ₹9.00 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.1% to ₹455. 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 Crompton Greaves Consumer Electricals, with the most bullish analyst valuing it at ₹550 and the most bearish at ₹323 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Crompton Greaves Consumer Electricals shareholders.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So it's pretty clear that Crompton Greaves Consumer Electricals is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Crompton Greaves Consumer Electricals following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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. At Simply Wall St, we have a full range of analyst estimates for Crompton Greaves Consumer Electricals going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Crompton Greaves Consumer Electricals that you should be aware of.

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.

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