Earnings Report: TV18 Broadcast Limited Missed Revenue Estimates By 14%

As you might know, TV18 Broadcast Limited (NSE:TV18BRDCST) last week released its latest quarterly, and things did not turn out so great for shareholders. Earnings fell badly short of analyst estimates, with ₹14b revenues missing by 14%, and statutory earnings per share (EPS) of ₹1.25 falling short of forecasts by some -11%. The analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for TV18 Broadcast

Taking into account the latest results, the current consensus from TV18 Broadcast's dual analysts is for revenues of ₹55.4b in 2022, which would reflect a sizeable 21% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 133% to ₹5.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹56.1b and earnings per share (EPS) of ₹4.00 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of ₹33.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TV18 Broadcast's past performance and to peers in the same industry. We would highlight that TV18 Broadcast's revenue growth is expected to slow, with forecast 21% increase next year well below the historical 27%p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 15% next year. Even after the forecast slowdown in growth, it seems obvious that TV18 Broadcast is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TV18 Broadcast following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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.

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 analyst estimates for TV18 Broadcast going out as far as 2023, and you can see them free on our platform here.

It might also be worth considering whether TV18 Broadcast's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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