Results: Aether Industries Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Aether Industries Limited (NSE:AETHER) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to ₹1,024 in the week after its latest annual results. The result was positive overall - although revenues of ₹6.6b were in line with what the analysts predicted, Aether Industries surprised by delivering a statutory profit of ₹10.47 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Aether Industries

Taking into account the latest results, the current consensus from Aether Industries' dual analysts is for revenues of ₹8.52b in 2024. This would reflect a substantial 30% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 42% to ₹13.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹8.74b and earnings per share (EPS) of ₹14.45 in 2024. 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 ₹1,085 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 clear from the latest estimates that Aether Industries' rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.3% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Aether Industries is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Aether Industries' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,085, with the latest estimates not enough to have an impact on their price targets.

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 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Aether Industries , and understanding this should be part of your investment process.

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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.