Earnings Miss: PB Fintech Limited Missed EPS By 17% And Analysts Are Revising Their Forecasts

It's been a good week for PB Fintech Limited (NSE:POLICYBZR) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.2% to ₹1,739. Statutory earnings per share of ₹1.09 unfortunately missed expectations by 17%, although it was encouraging to see revenues of ₹12b exceed expectations by 7.8%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for PB Fintech

Taking into account the latest results, the current consensus from PB Fintech's 18 analysts is for revenues of ₹46.4b in 2025. This would reflect a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 72% to ₹7.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹45.9b and earnings per share (EPS) of ₹9.22 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,595, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on PB Fintech, with the most bullish analyst valuing it at ₹2,000 and the most bearish at ₹1,205 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that PB Fintech's revenue growth is expected to slow, with the forecast 26% annualised growth rate until the end of 2025 being well below the historical 40% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.3% annually. Even after the forecast slowdown in growth, it seems obvious that PB Fintech is also expected to grow faster than 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 PB Fintech. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹1,595, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on PB Fintech. Long-term earnings power is much more important than next year's profits. We have forecasts for PB Fintech going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with PB Fintech .

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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.