Earnings Miss: Galaxy Surfactants Limited Missed EPS By 9.3% And Analysts Are Revising Their Forecasts

It's been a mediocre week for Galaxy Surfactants Limited (NSE:GALAXYSURF) shareholders, with the stock dropping 12% to ₹2,732 in the week since its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of ₹11b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.3% to hit ₹23.90 per share. 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'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 Galaxy Surfactants

Taking into account the latest results, the most recent consensus for Galaxy Surfactants from twelve analysts is for revenues of ₹42.2b in 2025. If met, it would imply a credible 7.9% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 11% to ₹97.66. Before this earnings report, the analysts had been forecasting revenues of ₹42.2b and earnings per share (EPS) of ₹100 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹3,318, 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. The most optimistic Galaxy Surfactants analyst has a price target of ₹4,067 per share, while the most pessimistic values it at ₹2,700. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Galaxy Surfactants' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Galaxy Surfactants is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Galaxy Surfactants going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Galaxy Surfactants that you need to take into consideration.

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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.