Analyst Estimates: Here's What Brokers Think Of INOX Leisure Limited (NSE:INOXLEISUR) After Its First-Quarter Report

INOX Leisure Limited (NSE:INOXLEISUR) just released its latest quarterly report and things are not looking great. It was not a great statutory result, with revenues coming in 91% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of ₹7.49. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on INOX Leisure after the latest results.

See our latest analysis for INOX Leisure

After the latest results, the consensus from INOX Leisure's nine analysts is for revenues of ₹7.50b in 2021, which would reflect a considerable 15% decline in sales compared to the last year of performance. Losses are forecast to balloon 97% to ₹37.50 per share. Before this earnings announcement, the analysts had been modelling revenues of ₹7.29b and losses of ₹19.39 per share in 2021. So it's pretty clear the analysts have mixed opinions on INOX Leisure even after this update; although they upped their revenue numbers, it came at the cost of a per-share losses.

The consensus price target stayed unchanged at ₹299, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic INOX Leisure analyst has a price target of ₹363 per share, while the most pessimistic values it at ₹234. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 15%, a significant reduction from annual growth of 6.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. It's pretty clear that INOX Leisure's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at INOX Leisure. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse 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. We have estimates - from multiple INOX Leisure analysts - going out to 2023, and you can see them free on our platform here.

You can also view our analysis of INOX Leisure's balance sheet, and whether we think INOX Leisure is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. 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.
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