United Spirits Limited (NSE:UNITDSPR) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

United Spirits Limited (NSE:UNITDSPR) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to ₹1,480 in the week after its latest quarterly results. Revenues came in 4.0% below expectations, at ₹28b. Statutory earnings per share were relatively better off, with a per-share profit of ₹19.83 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for United Spirits

Following the latest results, United Spirits' ten analysts are now forecasting revenues of ₹122.4b in 2025. This would be a reasonable 7.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.6% to ₹21.50. In the lead-up to this report, the analysts had been modelling revenues of ₹124.8b and earnings per share (EPS) of ₹22.37 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,468, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on United Spirits, with the most bullish analyst valuing it at ₹1,720 and the most bearish at ₹998 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 United Spirits shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the United Spirits' past performance and to peers in the same industry. The analysts are definitely expecting United Spirits' growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that United Spirits is expected to grow at about the same rate as the wider industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹1,468, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for United Spirits going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for United Spirits that you need to take into consideration.

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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.