Revenue Miss: Krsnaa Diagnostics Limited Fell 6.4% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

It's been a mediocre week for Krsnaa Diagnostics Limited (NSE:KRSNAA) shareholders, with the stock dropping 13% to ₹381 in the week since its latest third-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.2b, statutory earnings were in line with expectations, at ₹22.88 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Krsnaa Diagnostics

Taking into account the latest results, the most recent consensus for Krsnaa Diagnostics from single analyst is for revenues of ₹6.48b in 2024 which, if met, would be a major 40% increase on its sales over the past 12 months. Per-share earnings are expected to jump 59% to ₹30.90. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹6.70b and earnings per share (EPS) of ₹32.00 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analyst made no major changes to their price target of ₹810, suggesting the downgrades are not expected to have a long-term impact on Krsnaa Diagnostics' valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Krsnaa Diagnostics' rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 21% p.a. 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Krsnaa Diagnostics to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Krsnaa Diagnostics. 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 ₹810, with the latest estimates not enough to have an impact on their price target.

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 analyst estimates for Krsnaa Diagnostics going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Krsnaa Diagnostics you should know about.

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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.