Stock Analysis

Westlife Foodworld Limited Just Missed EPS By 33%: Here's What Analysts Think Will Happen Next

NSEI:WESTLIFE
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Westlife Foodworld Limited (NSE:WESTLIFE) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to ₹726 in the week after its latest third-quarter results. It looks like a pretty bad result, all things considered. Although revenues of ₹6.5b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 33% to hit ₹0.45 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Westlife Foodworld

earnings-and-revenue-growth
NSEI:WESTLIFE Earnings and Revenue Growth February 1st 2025

Taking into account the latest results, the current consensus from Westlife Foodworld's 21 analysts is for revenues of ₹29.2b in 2026. This would reflect a decent 20% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 657% to ₹5.53. Before this earnings report, the analysts had been forecasting revenues of ₹29.8b and earnings per share (EPS) of ₹7.11 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The analysts made no major changes to their price target of ₹781, suggesting the downgrades are not expected to have a long-term impact on Westlife Foodworld's valuation. 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 Westlife Foodworld at ₹941 per share, while the most bearish prices it at ₹626. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 20% annually. So it's pretty clear that Westlife Foodworld is expected to grow slower than similar companies in the same 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. The consensus price target held steady at ₹781, 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 Westlife Foodworld. Long-term earnings power is much more important than next year's profits. 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..

Before you take the next step you should know about the 3 warning signs for Westlife Foodworld (1 doesn't sit too well with us!) that we have uncovered.

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

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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.

About NSEI:WESTLIFE

Westlife Foodworld

Through its subsidiary, Hardcastle Restaurants Private Limited, owns and operates a chain of McDonald's restaurants in Western and Southern India.

Reasonable growth potential low.

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