Stock Analysis

Nuvoco Vistas Corporation Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

NSEI:NUVOCO
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As you might know, Nuvoco Vistas Corporation Limited (NSE:NUVOCO) recently reported its third-quarter numbers. It was a pretty negative result overall, with revenues of ₹24b missing analyst predictions by 2.8%. Worse, the business reported a statutory loss of ₹1.72 per share, a substantial decline on analyst expectations of a profit. 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 Nuvoco Vistas

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NSEI:NUVOCO Earnings and Revenue Growth January 25th 2025

Taking into account the latest results, the current consensus from Nuvoco Vistas' 17 analysts is for revenues of ₹114.0b in 2026. This would reflect a solid 11% increase on its revenue over the past 12 months. Nuvoco Vistas is also expected to turn profitable, with statutory earnings of ₹8.52 per share. Before this earnings report, the analysts had been forecasting revenues of ₹115.2b and earnings per share (EPS) of ₹9.45 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹368, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. The most optimistic Nuvoco Vistas analyst has a price target of ₹472 per share, while the most pessimistic values it at ₹300. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Nuvoco Vistas' revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2026 being well below the historical 11% 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) 0.9% per year. So it's pretty clear that, while Nuvoco Vistas' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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 forecasts for Nuvoco Vistas going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nuvoco Vistas you should know about.

Valuation is complex, but we're here to simplify it.

Discover if Nuvoco Vistas might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.