Arvind SmartSpaces Limited Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next

As you might know, Arvind SmartSpaces Limited (NSE:ARVSMART) last week released its latest full-year, and things did not turn out so great for shareholders. Unfortunately, Arvind SmartSpaces delivered a serious earnings miss. Revenues of ₹3.5b were 11% below expectations, and statutory earnings per share of ₹9.09 missed estimates by 20%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Arvind SmartSpaces after the latest results.

Check out our latest analysis for Arvind SmartSpaces

Taking into account the latest results, the current consensus from Arvind SmartSpaces' dual analysts is for revenues of ₹5.10b in 2025. This would reflect a huge 45% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 86% to ₹17.10. Before this earnings report, the analysts had been forecasting revenues of ₹5.11b and earnings per share (EPS) of ₹17.80 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 63% to ₹1,041, suggesting the revised estimates are not indicative of a weaker long-term future for the 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. The analysts are definitely expecting Arvind SmartSpaces' growth to accelerate, with the forecast 45% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 24% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Arvind SmartSpaces 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 Arvind SmartSpaces. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You can also see our analysis of Arvind SmartSpaces' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.