Oberoi Realty Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Oberoi Realty Limited (NSE:OBEROIRLTY) released its third-quarter result to the market. The early response was not positive, with shares down 5.6% to ₹551 in the past week. Revenues of ₹8.3b smashed analyst forecasts, although statutory earnings came up 54% short, at ₹7.88 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Oberoi Realty

Taking into account the latest results, the consensus forecast from Oberoi Realty's 17 analysts is for revenues of ₹25.7b in 2022, which would reflect a major 37% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 8.5% to ₹20.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹25.8b and earnings per share (EPS) of ₹20.87 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.6% to ₹521. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. There are some variant perceptions on Oberoi Realty, with the most bullish analyst valuing it at ₹682 and the most bearish at ₹300 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Oberoi Realty's past performance and to peers in the same industry. It's clear from the latest estimates that Oberoi Realty's rate of growth is expected to accelerate meaningfully, with the forecast 37% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Oberoi Realty to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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. We have estimates - from multiple Oberoi Realty analysts - going out to 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Oberoi Realty you should be aware of.

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