Macrotech Developers Limited Just Recorded A 13% Revenue Beat: Here's What Analysts Think

Macrotech Developers Limited (NSE:LODHA) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 13% higher than the analysts had forecast, at ₹92b, while EPS of ₹26.25 beat analyst models by 10%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Macrotech Developers

Taking into account the latest results, the consensus forecast from Macrotech Developers' 13 analysts is for revenues of ₹100.5b in 2023, which would reflect a meaningful 8.9% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 25% to ₹31.15. Before this earnings report, the analysts had been forecasting revenues of ₹90.7b and earnings per share (EPS) of ₹31.25 in 2023. It seems sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Even though revenue forecasts increased, there was no change to the consensus price target of ₹1,346, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic Macrotech Developers analyst has a price target of ₹1,699 per share, while the most pessimistic values it at ₹995. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. 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 8.9% annualised growth until the end of 2023. If achieved, this would be a much better result than the 6.5% 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 20% annually for the foreseeable future. Although Macrotech Developers' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. 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.

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 Macrotech Developers going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Macrotech Developers (1 is concerning!) that we have uncovered.

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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.