The Supreme Industries Limited Just Missed Earnings - But Analysts Have Updated Their Models

The analysts might have been a bit too bullish on The Supreme Industries Limited (NSE:SUPREMEIND), given that the company fell short of expectations when it released its third-quarter results last week. Results showed a clear earnings miss, with ₹25b revenue coming in 6.7% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹14.72 missed the mark badly, arriving some 23% below what was expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Supreme Industries

Taking into account the latest results, the most recent consensus for Supreme Industries from 24 analysts is for revenues of ₹127.5b in 2026. If met, it would imply a substantial 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 28% to ₹103. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹132.5b and earnings per share (EPS) of ₹113 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.8% to ₹4,764. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Supreme Industries, with the most bullish analyst valuing it at ₹6,458 and the most bearish at ₹3,233 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Supreme Industries'historical trends, as the 17% annualised revenue growth to the end of 2026 is roughly in line with the 15% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although Supreme Industries is expected to maintain its revenue growth rate, it's definitely 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Supreme Industries' future valuation.

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 estimates - from multiple Supreme Industries analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Supreme Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.