Earnings Miss: Aurobindo Pharma Limited Missed EPS By 14% And Analysts Are Revising Their Forecasts

Aurobindo Pharma Limited (NSE:AUROPHARMA) shareholders are probably feeling a little disappointed, since its shares fell 8.4% to ₹1,289 in the week after its latest quarterly results. Revenues were in line with forecasts, at ₹78b, although statutory earnings per share came in 14% below what the analysts expected, at ₹14.00 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Aurobindo Pharma

Taking into account the latest results, the consensus forecast from Aurobindo Pharma's 27 analysts is for revenues of ₹315.1b in 2025. This reflects an okay 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.6% to ₹65.71. Before this earnings report, the analysts had been forecasting revenues of ₹315.8b and earnings per share (EPS) of ₹66.95 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹1,588, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Aurobindo Pharma, with the most bullish analyst valuing it at ₹1,930 and the most bearish at ₹1,270 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Aurobindo Pharma's growth to accelerate, with the forecast 7.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Aurobindo Pharma is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹1,588, 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. At Simply Wall St, we have a full range of analyst estimates for Aurobindo Pharma going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Aurobindo Pharma's balance sheet, and whether we think Aurobindo Pharma is carrying too much debt, for free on our platform here.

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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.