Prism Johnson Limited (NSE:PRSMJOHNSN) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Prism Johnson Limited (NSE:PRSMJOHNSN) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results look to have been somewhat negative - revenue fell 2.5% short of analyst estimates at ₹18b, although statutory losses were somewhat better. The per-share loss was ₹0.15, 63% smaller than the analysts were expecting prior to the result. 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. 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 Prism Johnson

Following the latest results, Prism Johnson's four analysts are now forecasting revenues of ₹78.3b in 2025. This would be a credible 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dive 46% to ₹1.67 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹78.3b and earnings per share (EPS) of ₹2.17 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

The consensus price target held steady at ₹164, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Prism Johnson, with the most bullish analyst valuing it at ₹190 and the most bearish at ₹133 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 can infer from the latest estimates that forecasts expect a continuation of Prism Johnson'shistorical trends, as the 7.6% annualised revenue growth to the end of 2025 is roughly in line with the 6.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 5.1% per year. So it's clear that not only is revenue growth expected to be maintained, but Prism Johnson is 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 Prism Johnson. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Prism Johnson's revenue is expected to perform better 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.

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. We have forecasts for Prism Johnson going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Prism Johnson (including 1 which is concerning) .

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

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.