Earnings Miss: Eris Lifesciences Limited Missed EPS By 5.9% And Analysts Are Revising Their Forecasts

Investors in Eris Lifesciences Limited (NSE:ERIS) had a good week, as its shares rose 2.5% to close at ₹1,520 following the release of its annual results. Revenues of ₹29b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹25.81, missing estimates by 5.9%. 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.

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Following the latest results, Eris Lifesciences' ten analysts are now forecasting revenues of ₹33.7b in 2026. This would be a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 52% to ₹39.23. In the lead-up to this report, the analysts had been modelling revenues of ₹33.8b and earnings per share (EPS) of ₹39.98 in 2026. 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.

See our latest analysis for Eris Lifesciences

The consensus price target rose 7.3% to ₹1,662despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Eris Lifesciences' earnings by assigning a price premium. 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. The most optimistic Eris Lifesciences analyst has a price target of ₹1,880 per share, while the most pessimistic values it at ₹1,350. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Eris Lifesciences shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eris Lifesciences' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Eris Lifesciences' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. So it's pretty clear that, while Eris Lifesciences' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Eris Lifesciences going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Eris Lifesciences .

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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.