Stock Analysis

The Supreme Industries Limited Just Beat EPS By 6.5%: Here's What Analysts Think Will Happen Next

NSEI:SUPREMEIND
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Shareholders might have noticed that The Supreme Industries Limited (NSE:SUPREMEIND) filed its quarterly result this time last week. The early response was not positive, with shares down 2.1% to ₹4,070 in the past week. Supreme Industries missed revenue estimates by 4.5%, coming in at₹24b, although statutory earnings per share (EPS) of ₹20.17 beat expectations, coming in 6.5% ahead of analyst estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Supreme Industries

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NSEI:SUPREMEIND Earnings and Revenue Growth January 23rd 2024

Following the latest results, Supreme Industries' 21 analysts are now forecasting revenues of ₹116.9b in 2025. This would be a sizeable 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 20% to ₹101. Before this earnings report, the analysts had been forecasting revenues of ₹119.0b and earnings per share (EPS) of ₹103 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹4,410. 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. The most optimistic Supreme Industries analyst has a price target of ₹5,650 per share, while the most pessimistic values it at ₹2,653. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Supreme Industries'historical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So it's pretty clear that Supreme Industries is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 estimates - from multiple Supreme Industries analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Supreme Industries that we have uncovered.

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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.