Earnings Miss: Navin Fluorine International Limited Missed EPS By 20% And Analysts Are Revising Their Forecasts

As you might know, Navin Fluorine International Limited (NSE:NAVINFLUOR) last week released its latest quarterly, and things did not turn out so great for shareholders. Navin Fluorine International missed earnings this time around, with ₹5.2b revenue coming in 9.2% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹10.32 also fell short of expectations by 20%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Navin Fluorine International

Taking into account the latest results, the current consensus from Navin Fluorine International's 23 analysts is for revenues of ₹25.7b in 2025. This would reflect a substantial 23% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 20% to ₹63.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹26.4b and earnings per share (EPS) of ₹70.06 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

What's most unexpected is that the consensus price target rose 5.8% to ₹3,730, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Navin Fluorine International, with the most bullish analyst valuing it at ₹4,351 and the most bearish at ₹2,634 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Navin Fluorine International's growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Navin Fluorine International 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. They also downgraded Navin Fluorine International's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Navin Fluorine International going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Navin Fluorine International that you need to be mindful 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.

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