Earnings Miss: Sun TV Network Limited Missed EPS By 5.2% And Analysts Are Revising Their Forecasts

Sun TV Network Limited (NSE:SUNTV) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Sun TV Network missed analyst forecasts, with revenues of ₹40b and statutory earnings per share (EPS) of ₹43.23, falling short by 2.3% and 5.2% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the eleven analysts covering Sun TV Network are now predicting revenues of ₹43.7b in 2026. If met, this would reflect a notable 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.7% to ₹46.55. In the lead-up to this report, the analysts had been modelling revenues of ₹44.1b and earnings per share (EPS) of ₹48.95 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Sun TV Network

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹745, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on Sun TV Network, with the most bullish analyst valuing it at ₹890 and the most bearish at ₹630 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sun TV Network's past performance and to peers in the same industry. It's clear from the latest estimates that Sun TV Network's rate of growth is expected to accelerate meaningfully, with the forecast 8.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.9% per year. Sun TV Network is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sun TV Network. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹745, with the latest estimates not enough to have an impact on their price targets.

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 Sun TV Network analysts - going out to 2028, 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 Sun TV Network 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.