Earnings Miss: Krsnaa Diagnostics Limited Missed EPS By 7.7% And Analysts Are Revising Their Forecasts
Shareholders might have noticed that Krsnaa Diagnostics Limited (NSE:KRSNAA) filed its annual result this time last week. The early response was not positive, with shares down 8.3% to ₹647 in the past week. It looks like the results were a bit of a negative overall. While revenues of ₹7.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.7% to hit ₹23.56 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Krsnaa Diagnostics' four analysts are now forecasting revenues of ₹9.04b in 2026. This would be a substantial 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 40% to ₹33.70. Before this earnings report, the analysts had been forecasting revenues of ₹9.82b and earnings per share (EPS) of ₹36.73 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
View our latest analysis for Krsnaa Diagnostics
The analysts made no major changes to their price target of ₹1,079, suggesting the downgrades are not expected to have a long-term impact on Krsnaa Diagnostics' 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. There are some variant perceptions on Krsnaa Diagnostics, with the most bullish analyst valuing it at ₹1,175 and the most bearish at ₹994 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Krsnaa Diagnostics is an easy business to forecast or the the analysts are all using similar assumptions.
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. It's clear from the latest estimates that Krsnaa Diagnostics' rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Krsnaa Diagnostics is expected to grow at about the same rate as 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 Krsnaa Diagnostics. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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. At Simply Wall St, we have a full range of analyst estimates for Krsnaa Diagnostics going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Krsnaa Diagnostics that you need to take into consideration.
Valuation is complex, but we're here to simplify it.
Discover if Krsnaa Diagnostics might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.