Results: Life Insurance Corporation of India Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Life Insurance Corporation of India (NSE:LICI) shareholders, because the company has just released its latest yearly results, and the shares gained 7.0% to ₹604. Revenues were ₹8.0t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹56.91, an impressive 49% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Life Insurance Corporation of India

Following the latest results, Life Insurance Corporation of India's five analysts are now forecasting revenues of ₹8.54t in 2024. This would be an okay 6.1% improvement in sales compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹8.75t and earnings per share (EPS) of ₹33.54 in 2024. Overall, while there's been a small dip in revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important following the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of ₹802. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Life Insurance Corporation of India at ₹1,005 per share, while the most bearish prices it at ₹625. 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 Life Insurance Corporation of India shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.1% growth on an annualised basis. That is in line with its 7.2% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Life Insurance Corporation of India is expected to grow slower than similar companies in the same industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Life Insurance Corporation of India next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. 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.

We have estimates for Life Insurance Corporation of India from its five analysts out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Life Insurance Corporation of India 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.