Clean Science and Technology Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Clean Science and Technology Limited (NSE:CLEAN) shareholders, because the company has just released its latest full-year results, and the shares gained 8.9% to ₹1,815. Revenues of ₹6.8b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹21.51, missing estimates by 7.9%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Clean Science and Technology after the latest results.

Check out our latest analysis for Clean Science and Technology

After the latest results, the five analysts covering Clean Science and Technology are now predicting revenues of ₹9.25b in 2023. If met, this would reflect a substantial 35% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 34% to ₹28.92. In the lead-up to this report, the analysts had been modelling revenues of ₹8.69b and earnings per share (EPS) of ₹30.17 in 2023. So it's pretty clear consensus is mixed on Clean Science and Technology after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

There's been no major changes to the price target of ₹2,007, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Clean Science and Technology at ₹2,426 per share, while the most bearish prices it at ₹1,651. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Clean Science and Technology's growth to accelerate, with the forecast 35% annualised growth to the end of 2023 ranking favourably alongside historical growth of 17% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Clean Science and Technology to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Clean Science and Technology analysts - going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Clean Science and Technology has 1 warning sign we think 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.