It's shaping up to be a tough period for CRISIL Limited (NSE:CRISIL), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. CRISIL missed analyst forecasts, with revenues of ₹8.4b and statutory earnings per share (EPS) of ₹23.46, falling short by 4.5% and 5.8% respectively. 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.
Taking into account the latest results, the most recent consensus for CRISIL from dual analysts is for revenues of ₹35.3b in 2025. If met, it would imply a reasonable 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.5% to ₹106. Before this earnings report, the analysts had been forecasting revenues of ₹34.9b and earnings per share (EPS) of ₹103 in 2025. So the consensus seems to have become somewhat more optimistic on CRISIL's earnings potential following these results.
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There's been no major changes to the consensus price target of ₹4,670, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that CRISIL's revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CRISIL.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CRISIL following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CRISIL's revenue is expected to 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for CRISIL going out as far as 2027, and you can see them free on our platform here.
You can also see our analysis of CRISIL's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.