Neuland Laboratories Limited Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Shareholders might have noticed that Neuland Laboratories Limited (NSE:NEULANDLAB) filed its second-quarter result this time last week. The early response was not positive, with shares down 5.3% to ₹13,793 in the past week. Neuland Laboratories reported a serious miss, with revenue of ₹3.1b falling a huge 28% short of analyst estimates. The bright side is that statutory earnings per share of ₹234 were in line with forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Neuland Laboratories

Taking into account the latest results, the consensus forecast from Neuland Laboratories' two analysts is for revenues of ₹15.9b in 2025. This reflects an okay 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to ₹250. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹15.9b and earnings per share (EPS) of ₹266 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹17,625, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Neuland Laboratories' revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Neuland Laboratories.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Neuland Laboratories' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for Neuland Laboratories that we have uncovered.

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

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.