Stock Analysis

Jagran Prakashan Limited Just Missed Earnings - But Analysts Have Updated Their Models

Jagran Prakashan Limited (NSE:JAGRAN) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to ₹90.60 in the week after its latest full-year results. Revenues were in line with forecasts, at ₹20b, although statutory earnings per share came in 20% below what the analyst expected, at ₹8.44 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Jagran Prakashan

earnings-and-revenue-growth
NSEI:JAGRAN Earnings and Revenue Growth May 31st 2024

Following the latest results, Jagran Prakashan's single analyst are now forecasting revenues of ₹21.7b in 2025. This would be a reasonable 7.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 39% to ₹11.70. In the lead-up to this report, the analyst had been modelling revenues of ₹22.4b and earnings per share (EPS) of ₹12.29 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 7.6% to ₹104.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jagran Prakashan's past performance and to peers in the same industry. For example, we noticed that Jagran Prakashan's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.1% a year 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 8.7% annually for the foreseeable future. So although Jagran Prakashan'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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Jagran Prakashan's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Jagran Prakashan has 2 warning signs we think you should be aware of.

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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.

About NSEI:JAGRAN

Jagran Prakashan

Jagran Prakashan Limited prints and publishes newspapers and magazines in India.

Flawless balance sheet, undervalued and pays a dividend.

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