Earnings Miss: Carborundum Universal Limited Missed EPS By 6.8% And Analysts Are Revising Their Forecasts

Carborundum Universal Limited (NSE:CARBORUNIV) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Carborundum Universal missed analyst forecasts, with revenues of ₹12b and statutory earnings per share (EPS) of ₹5.84, falling short by 4.5% and 6.8% respectively. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Carborundum Universal

Taking into account the latest results, the most recent consensus for Carborundum Universal from eleven analysts is for revenues of ₹54.4b in 2025. If met, it would imply a decent 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 27% to ₹30.91. Before this earnings report, the analysts had been forecasting revenues of ₹55.6b and earnings per share (EPS) of ₹31.47 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was steady at ₹1,247even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Carborundum Universal at ₹1,408 per share, while the most bearish prices it at ₹971. 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 Carborundum Universal shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. It's clear that while Carborundum Universal's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Yet - earnings are more important to the intrinsic value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Carborundum Universal. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Carborundum Universal analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Carborundum Universal that you should be aware of.

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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.