Earnings Miss: UTI Asset Management Company Limited Missed EPS By 10% And Analysts Are Revising Their Forecasts

It's been a sad week for UTI Asset Management Company Limited (NSE:UTIAMC), who've watched their investment drop 17% to ₹1,011 in the week since the company reported its quarterly result. Revenues were in line with forecasts, at ₹4.2b, although statutory earnings per share came in 10% below what the analysts expected, at ₹11.74 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.

View our latest analysis for UTI Asset Management

Taking into account the latest results, the consensus forecast from UTI Asset Management's 13 analysts is for revenues of ₹19.7b in 2026. This reflects a satisfactory 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.6% to ₹68.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹19.8b and earnings per share (EPS) of ₹68.86 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 5.3% to ₹1,225, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic UTI Asset Management analyst has a price target of ₹1,440 per share, while the most pessimistic values it at ₹1,000. 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 UTI Asset Management shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UTI Asset Management's past performance and to peers in the same industry. We would highlight that UTI Asset Management's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that UTI Asset Management is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have forecasts for UTI Asset Management going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.