T.V. Today Network Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

One of the biggest stories of last week was how T.V. Today Network Limited (NSE:TVTODAY) shares plunged 28% in the week since its latest annual results, closing yesterday at ₹279. Revenues of ₹9.7b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹30.42, missing estimates by 9.5%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for T.V. Today Network

Taking into account the latest results, the consensus forecast from T.V. Today Network's dual analysts is for revenues of ₹10.1b in 2023, which would reflect a reasonable 3.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to expand 12% to ₹34.20. In the lead-up to this report, the analysts had been modelling revenues of ₹10.4b and earnings per share (EPS) of ₹37.35 in 2023. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹393 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that T.V. Today Network's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 5.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than T.V. Today Network.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for T.V. Today Network. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will 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.

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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for T.V. Today Network you should know about.

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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.