Stock Analysis

Westlife Foodworld Limited Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next

NSEI:WESTLIFE
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Westlife Foodworld Limited (NSE:WESTLIFE) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. While revenues of ₹24b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit ₹4.44 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Westlife Foodworld

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NSEI:WESTLIFE Earnings and Revenue Growth May 11th 2024

Taking into account the latest results, the current consensus from Westlife Foodworld's 16 analysts is for revenues of ₹27.2b in 2025. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 53% to ₹6.77. Before this earnings report, the analysts had been forecasting revenues of ₹28.2b and earnings per share (EPS) of ₹7.91 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The analysts made no major changes to their price target of ₹876, suggesting the downgrades are not expected to have a long-term impact on Westlife Foodworld's 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 Westlife Foodworld, with the most bullish analyst valuing it at ₹1,039 and the most bearish at ₹722 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. 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 15% 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 17% per year. So although Westlife Foodworld is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Westlife Foodworld. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 Westlife Foodworld going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Westlife Foodworld has 2 warning signs we think 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.