Nuvoco Vistas Corporation Limited Just Missed Earnings - But Analysts Have Updated Their Models

Nuvoco Vistas Corporation Limited (NSE:NUVOCO) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to ₹334 in the week after its latest full-year results. Revenues were in line with forecasts, at ₹107b, although statutory earnings per share came in 17% below what the analysts expected, at ₹4.13 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Nuvoco Vistas

Taking into account the latest results, the most recent consensus for Nuvoco Vistas from 14 analysts is for revenues of ₹113.8b in 2025. If met, it would imply a satisfactory 6.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 98% to ₹8.19. Before this earnings report, the analysts had been forecasting revenues of ₹116.6b and earnings per share (EPS) of ₹10.69 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹384 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Nuvoco Vistas, with the most bullish analyst valuing it at ₹431 and the most bearish at ₹335 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Nuvoco Vistas' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 6.2% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Nuvoco Vistas is still expected 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. 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 ₹384, with the latest estimates not enough to have an impact on their price targets.

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 Nuvoco Vistas going out to 2027, and you can see them free on our platform here..

Even so, be aware that Nuvoco Vistas is showing 1 warning sign in our investment analysis , you should know about...

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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.