Krsnaa Diagnostics Limited Just Missed Earnings - But Analysts Have Updated Their Models

Krsnaa Diagnostics Limited (NSE:KRSNAA) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to ₹690 in the week after its latest third-quarter results. Revenue of ₹1.6b surpassed estimates by 2.1%, although statutory earnings per share missed badly, coming in 26% below expectations at ₹3.97 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Krsnaa Diagnostics

Following the latest results, Krsnaa Diagnostics' three analysts are now forecasting revenues of ₹8.20b in 2025. This would be a huge 40% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 97% to ₹34.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹8.43b and earnings per share (EPS) of ₹37.30 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹886 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Krsnaa Diagnostics analyst has a price target of ₹935 per share, while the most pessimistic values it at ₹837. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Krsnaa Diagnostics' growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Krsnaa Diagnostics to grow faster than 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹886, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Krsnaa Diagnostics going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Krsnaa Diagnostics 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.