Earnings Beat: Eureka Forbes Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Eureka Forbes Limited (NSE:EUREKAFORB) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of ₹6.0b, some 3.9% above estimates, and statutory earnings per share (EPS) coming in at ₹1.81, 21% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Eureka Forbes

After the latest results, the five analysts covering Eureka Forbes are now predicting revenues of ₹28.0b in 2026. If met, this would reflect a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 47% to ₹10.34. Before this earnings report, the analysts had been forecasting revenues of ₹28.1b and earnings per share (EPS) of ₹10.05 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹650, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Eureka Forbes at ₹750 per share, while the most bearish prices it at ₹586. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Eureka Forbes' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that Eureka Forbes is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Eureka Forbes' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹650, 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 Eureka Forbes. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Eureka Forbes analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.