Camlin Fine Sciences Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Camlin Fine Sciences Limited (NSE:CAMLINFINE) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 13% higher than the analysts had forecast, at ₹4.8b, while EPS of ₹0.82 beat analyst models by 17%. 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.

Check out the opportunities and risks within the IN Chemicals industry.

Following the latest results, Camlin Fine Sciences' twin analysts are now forecasting revenues of ₹18.2b in 2023. This would be a meaningful 11% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 53% to ₹6.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.9b and earnings per share (EPS) of ₹5.85 in 2023. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for Camlin Fine Sciences 5.5% to ₹193on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Camlin Fine Sciences' past performance and to peers in the same industry. The analysts are definitely expecting Camlin Fine Sciences' growth to accelerate, with the forecast 23% annualised growth to the end of 2023 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Camlin Fine Sciences is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Camlin Fine Sciences' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Camlin Fine Sciences. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Camlin Fine Sciences (1 is concerning!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.