Stock Analysis

Dish TV India Limited Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

NSEI:DISHTV
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Dish TV India Limited (NSE:DISHTV) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to ₹15.75 in the week after its latest yearly results. Revenues fell 3.6% short of expectations, at ₹19b. Earnings correspondingly dipped, with Dish TV India reporting a statutory loss of ₹10.22 per share, whereas the analyst had previously modelled a profit in this period. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Dish TV India

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NSEI:DISHTV Earnings and Revenue Growth May 30th 2024

Following the latest results, Dish TV India's single analyst are now forecasting revenues of ₹19.9b in 2025. This would be an okay 6.0% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Dish TV India forecast to report a statutory profit of ₹0.60 per share. Before this earnings report, the analyst had been forecasting revenues of ₹20.4b and earnings per share (EPS) of ₹0.70 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 29% to ₹17.00, with the weaker earnings outlook clearly leading valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Dish TV India is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.0% annualised growth until the end of 2025. If achieved, this would be a much better result than the 21% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.8% annually for the foreseeable future. So although Dish TV India's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Dish TV India going out as far as 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Dish TV India that you should be aware of.

Valuation is complex, but we're helping make it simple.

Find out whether Dish TV India is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.