Earnings Update: Eris Lifesciences Limited (NSE:ERIS) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Last week saw the newest quarterly earnings release from Eris Lifesciences Limited (NSE:ERIS), an important milestone in the company's journey to build a stronger business. It was a pretty mixed result, with revenues beating expectations to hit ₹7.2b. Statutory earnings fell 4.7% short of analyst forecasts, reaching ₹6.10 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Eris Lifesciences

Following the latest results, Eris Lifesciences' seven analysts are now forecasting revenues of ₹30.3b in 2025. This would be a sizeable 35% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹27.85, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹29.8b and earnings per share (EPS) of ₹29.61 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹1,138, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Eris Lifesciences, with the most bullish analyst valuing it at ₹1,580 and the most bearish at ₹980 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Eris Lifesciences' growth to accelerate, with the forecast 49% annualised growth to the end of 2025 ranking favourably alongside historical growth of 16% 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 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eris Lifesciences to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,138, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Eris Lifesciences (1 is significant!) that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com