Jyothy Labs Limited (NSE:JYOTHYLAB) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Jyothy Labs Limited (NSE:JYOTHYLAB) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a workmanlike result, with revenues of ₹4.8b coming in 2.1% ahead of expectations, and statutory earnings per share of ₹4.64, in line with analyst appraisals. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Jyothy Labs

Taking into account the latest results, the current consensus from Jyothy Labs' ten analysts is for revenues of ₹20.9b in 2022, which would reflect a notable 16% increase on its sales over the past 12 months. Statutory earnings per share are predicted to leap 23% to ₹6.64. In the lead-up to this report, the analysts had been modelling revenues of ₹20.7b and earnings per share (EPS) of ₹6.63 in 2022. 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 analysts reconfirmed their price target of ₹176, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Jyothy Labs at ₹226 per share, while the most bearish prices it at ₹144. 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 Jyothy Labs shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jyothy Labs' past performance and to peers in the same industry. The analysts are definitely expecting Jyothy Labs' growth to accelerate, with the forecast 16% growth ranking favourably alongside historical growth of 2.1% 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 9.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jyothy Labs is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at ₹176, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Jyothy Labs analysts - going out to 2023, and you can see them free on our platform here.

Even so, be aware that Jyothy Labs is showing 1 warning sign in our investment analysis , you should know about...

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