Earnings Miss: Jubilant FoodWorks Limited Missed EPS By 5.6% And Analysts Are Revising Their Forecasts

Shareholders of Jubilant FoodWorks Limited (NSE:JUBLFOOD) will be pleased this week, given that the stock price is up 11% to ₹651 following its latest quarterly results. Results were mixed, with revenues of ₹19b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were ₹0.85 per share, -5.6% below whatthe analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Jubilant FoodWorks

After the latest results, the 18 analysts covering Jubilant FoodWorks are now predicting revenues of ₹76.6b in 2025. If met, this would reflect a huge 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to sink 10% to ₹5.87 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹73.4b and earnings per share (EPS) of ₹6.55 in 2025. So it's pretty clear the analysts have mixed opinions on Jubilant FoodWorks after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

The analysts also upgraded Jubilant FoodWorks' price target 13% to ₹595, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Jubilant FoodWorks at ₹850 per share, while the most bearish prices it at ₹335. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Jubilant FoodWorks' rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jubilant FoodWorks to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Jubilant FoodWorks analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Jubilant FoodWorks has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.