Prestige Estates Projects Limited Just Missed EPS By 48%: Here's What Analysts Think Will Happen Next

Prestige Estates Projects Limited (NSE:PRESTIGE) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Unfortunately, Prestige Estates Projects delivered a serious earnings miss. Revenues of ₹19b were 12% below expectations, and statutory earnings per share of ₹5.80 missed estimates by 48%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Prestige Estates Projects

After the latest results, the 16 analysts covering Prestige Estates Projects are now predicting revenues of ₹113.0b in 2025. If met, this would reflect a sizeable 40% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 24% to ₹25.30 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹113.1b and earnings per share (EPS) of ₹23.45 in 2025. So the consensus seems to have become somewhat more optimistic on Prestige Estates Projects' earnings potential following these results.

The consensus price target was unchanged at ₹1,765, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Prestige Estates Projects at ₹2,320 per share, while the most bearish prices it at ₹1,270. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prestige Estates Projects' past performance and to peers in the same industry. It's clear from the latest estimates that Prestige Estates Projects' rate of growth is expected to accelerate meaningfully, with the forecast 57% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Prestige Estates Projects to grow faster than the wider 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. 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 ₹1,765, 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 estimates - from multiple Prestige Estates Projects analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Prestige Estates Projects (1 makes us a bit uncomfortable!) that you need to take into consideration.

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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.

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