Earnings Beat: Lloyds Metals and Energy Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Investors in Lloyds Metals and Energy Limited (NSE:LLOYDSME) had a good week, as its shares rose 7.3% to close at ₹778 following the release of its first-quarter results. Lloyds Metals and Energy missed revenue estimates by 2.3%, coming in at₹24b, although statutory earnings per share (EPS) of ₹10.96 beat expectations, coming in 8.5% ahead of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Lloyds Metals and Energy

After the latest results, the sole analyst covering Lloyds Metals and Energy are now predicting revenues of ₹90.5b in 2025. If met, this would reflect a sizeable 30% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 59% to ₹42.50. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹91.3b and earnings per share (EPS) of ₹42.20 in 2025. The consensus analyst doesn't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 54% to ₹1,000. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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. We would highlight that Lloyds Metals and Energy's revenue growth is expected to slow, with the forecast 42% annualised growth rate until the end of 2025 being well below the historical 65% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. Even after the forecast slowdown in growth, it seems obvious that Lloyds Metals and Energy is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst 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 Lloyds Metals and Energy. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Lloyds Metals and Energy .

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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.

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