Tarsons Products Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Tarsons Products Limited (NSE:TARSONS) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Tarsons Products delivered a grave earnings miss, with both revenues (₹648m) and statutory earnings per share (₹1.21) falling badly short of analyst expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Tarsons Products

Taking into account the latest results, the most recent consensus for Tarsons Products from three analysts is for revenues of ₹3.73b in 2025. If met, it would imply a decent 17% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.3% to ₹7.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹3.87b and earnings per share (EPS) of ₹11.00 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹561 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Tarsons Products, with the most bullish analyst valuing it at ₹700 and the most bearish at ₹407 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Tarsons Products' growth to accelerate, with the forecast 23% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.8% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tarsons Products is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tarsons Products. They also downgraded Tarsons Products' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹561, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tarsons Products. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Tarsons Products 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 Tarsons Products .

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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.