Stock Analysis

Westlife Foodworld Limited Just Missed Earnings - But Analysts Have Updated Their Models

NSEI:WESTLIFE
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Westlife Foodworld Limited (NSE:WESTLIFE) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with ₹6.2b revenue coming in 2.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹0.21 missed the mark badly, arriving some 43% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Westlife Foodworld

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NSEI:WESTLIFE Earnings and Revenue Growth July 28th 2024

Taking into account the latest results, the consensus forecast from Westlife Foodworld's 19 analysts is for revenues of ₹26.4b in 2025. This reflects a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 43% to ₹3.99. In the lead-up to this report, the analysts had been modelling revenues of ₹27.1b and earnings per share (EPS) of ₹5.45 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analysts made no major changes to their price target of ₹847, suggesting the downgrades are not expected to have a long-term impact on Westlife Foodworld's 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. There are some variant perceptions on Westlife Foodworld, with the most bullish analyst valuing it at ₹991 and the most bearish at ₹698 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 Westlife Foodworld shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Westlife Foodworld'shistorical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. It's clear that while Westlife Foodworld's 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 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Westlife Foodworld analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Westlife Foodworld that you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if Westlife Foodworld might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.