Earnings Miss: Macrotech Developers Limited Missed EPS By 15% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Macrotech Developers Limited (NSE:LODHA), given that the company fell short of expectations when it released its annual results last week. Macrotech Developers missed earnings this time around, with ₹103b revenue coming in 5.7% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹15.99 also fell short of expectations by 15%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Macrotech Developers

Following the latest results, Macrotech Developers' 15 analysts are now forecasting revenues of ₹135.2b in 2025. This would be a major 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 50% to ₹23.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹135.8b and earnings per share (EPS) of ₹23.42 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹1,134, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Macrotech Developers, with the most bullish analyst valuing it at ₹1,478 and the most bearish at ₹705 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Macrotech Developers is forecast to grow faster in the future than it has in the past, with revenues expected to display 31% annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 23% annually. So it looks like Macrotech Developers is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹1,134, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Macrotech Developers going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Macrotech Developers , and understanding it should be part of your investment process.

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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.