Earnings Miss: Jubilant FoodWorks Limited Missed EPS By 36% And Analysts Are Revising Their Forecasts

Investors in Jubilant FoodWorks Limited (NSE:JUBLFOOD) had a good week, as its shares rose 4.1% to close at ₹625 following the release of its second-quarter results. Results overall were not great, with earnings of ₹0.97 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹20b and were slightly better than forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Jubilant FoodWorks

After the latest results, the 20 analysts covering Jubilant FoodWorks are now predicting revenues of ₹79.1b in 2025. If met, this would reflect a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 22% to ₹4.79 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹76.7b and earnings per share (EPS) of ₹5.79 in 2025. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

There's been no major changes to the price target of ₹628, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Jubilant FoodWorks, with the most bullish analyst valuing it at ₹880 and the most bearish at ₹350 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Jubilant FoodWorks' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jubilant FoodWorks is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jubilant FoodWorks. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Jubilant FoodWorks going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Jubilant FoodWorks you should be aware of, and 1 of them is potentially serious.

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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.