Prestige Estates Projects Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Prestige Estates Projects Limited (NSE:PRESTIGE), given that the company fell short of expectations when it released its full-year results last week. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (₹73b) coming in 23% below what they had expected. Statutory earnings per share of ₹11.19 fell 46% short. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Prestige Estates Projects after the latest results.

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Taking into account the latest results, the consensus forecast from Prestige Estates Projects' 16 analysts is for revenues of ₹118.4b in 2026. This reflects a sizeable 61% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 236% to ₹36.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹127.0b and earnings per share (EPS) of ₹35.36 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

See our latest analysis for Prestige Estates Projects

The consensus has made no major changes to the price target of ₹1,692, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Prestige Estates Projects at ₹2,380 per share, while the most bearish prices it at ₹1,350. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Prestige Estates Projects' growth to accelerate, with the forecast 61% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Prestige Estates Projects is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Prestige Estates Projects' earnings potential next year. They also downgraded Prestige Estates Projects' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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. We have estimates - from multiple Prestige Estates Projects analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Prestige Estates Projects (of which 1 is a bit concerning!) you should know about.

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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.