Earnings Miss: Nuvoco Vistas Corporation Limited Missed EPS By 91% And Analysts Are Revising Their Forecasts

Nuvoco Vistas Corporation Limited (NSE:NUVOCO) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to ₹338 in the week after its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of ₹26b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 91% to hit ₹0.08 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Nuvoco Vistas

Taking into account the latest results, the most recent consensus for Nuvoco Vistas from 17 analysts is for revenues of ₹110.4b in 2025. If met, it would imply an okay 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 97% to ₹7.49. Before this earnings report, the analysts had been forecasting revenues of ₹114.1b and earnings per share (EPS) of ₹8.17 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of ₹385, suggesting the downgrades are not expected to have a long-term impact on Nuvoco Vistas' 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 Nuvoco Vistas at ₹475 per share, while the most bearish prices it at ₹325. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 Nuvoco Vistas' revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 5.6% annually. So it's clear that despite the slowdown in growth, Nuvoco Vistas is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nuvoco Vistas. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target held steady at ₹385, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Nuvoco Vistas. Long-term earnings power is much more important than next year's profits. We have forecasts for Nuvoco Vistas going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nuvoco Vistas 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.

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