Alkyl Amines Chemicals Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week saw the newest third-quarter earnings release from Alkyl Amines Chemicals Limited (NSE:ALKYLAMINE), an important milestone in the company's journey to build a stronger business. It was not a great result overall. While revenues of ₹3.9b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 17% to hit ₹8.93 per share. Following the result, the analyst has 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Alkyl Amines Chemicals

Following the latest results, Alkyl Amines Chemicals' sole analyst are now forecasting revenues of ₹19.2b in 2024. This would be a solid 13% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 35% to ₹59.70. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹21.1b and earnings per share (EPS) of ₹68.70 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹3,075 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

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. It's pretty clear that there is an expectation that Alkyl Amines Chemicals' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 296 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it looks like Alkyl Amines Chemicals is forecast to grow at about the same rate as 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 Alkyl Amines Chemicals. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹3,075, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on Alkyl Amines Chemicals. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Alkyl Amines Chemicals going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Alkyl Amines Chemicals that we have uncovered.

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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.