DLF Limited Just Missed EPS By 32%: Here's What Analysts Think Will Happen Next

DLF Limited (NSE:DLF) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with ₹15b revenue coming in 5.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.82 missed the mark badly, arriving some 32% below what was expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for DLF

After the latest results, the 14 analysts covering DLF are now predicting revenues of ₹61.1b in 2022. If met, this would reflect a decent 13% improvement in sales compared to the last 12 months. DLF is also expected to turn profitable, with statutory earnings of ₹6.45 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹62.2b and earnings per share (EPS) of ₹6.39 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 8.1% to ₹249despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of DLF's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on DLF, with the most bullish analyst valuing it at ₹350 and the most bearish at ₹131 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. For example, we noticed that DLF's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 13%, well above its historical decline of 8.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 15% per year. So it looks like DLF is expected to grow at about the same rate as the wider industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DLF going out to 2023, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for DLF you should know about.

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This article by Simply Wall St is general in nature. 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.
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