Stock Analysis

Gland Pharma Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

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NSEI:GLAND

As you might know, Gland Pharma Limited (NSE:GLAND) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹14b, statutory earnings missed forecasts by an incredible 34%, coming in at just ₹8.73 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. 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 Gland Pharma

NSEI:GLAND Earnings and Revenue Growth August 9th 2024

After the latest results, the eleven analysts covering Gland Pharma are now predicting revenues of ₹62.5b in 2025. If met, this would reflect a reasonable 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to ₹53.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹62.6b and earnings per share (EPS) of ₹64.62 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.6% to ₹1,974, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Gland Pharma analyst has a price target of ₹3,120 per share, while the most pessimistic values it at ₹1,214. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's pretty clear that there is an expectation that Gland Pharma's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.0% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past three years. Compare this to the 165 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it looks like Gland Pharma is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Gland Pharma going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Gland Pharma .

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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.