Nuvoco Vistas Corporation Limited Just Reported A Surprise Profit And Analysts Updated Their Estimates

As you might know, Nuvoco Vistas Corporation Limited (NSE:NUVOCO) recently reported its quarterly numbers. It looks like a credible result overall - although revenues of ₹27b were what the analysts expected, Nuvoco Vistas surprised by delivering a statutory profit of ₹0.57 per share, instead of the previously forecast loss. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Nuvoco Vistas

Taking into account the latest results, the current consensus from Nuvoco Vistas' twelve analysts is for revenues of ₹108.9b in 2023, which would reflect a notable 11% increase on its sales over the past 12 months. Earnings are expected to improve, with Nuvoco Vistas forecast to report a statutory profit of ₹2.99 per share. Before this earnings report, the analysts had been forecasting revenues of ₹107.4b and earnings per share (EPS) of ₹2.64 in 2023. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

There's been no major changes to the consensus price target of ₹364, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Nuvoco Vistas, with the most bullish analyst valuing it at ₹463 and the most bearish at ₹290 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. We can infer from the latest estimates that forecasts expect a continuation of Nuvoco Vistas'historical trends, as the 16% annualised revenue growth to the end of 2023 is roughly in line with the 16% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that Nuvoco Vistas is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nuvoco Vistas following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nuvoco Vistas going out to 2025, 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 1 warning sign for Nuvoco Vistas 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.