Ethos Limited Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next

Investors in Ethos Limited (NSE:ETHOSLTD) had a good week, as its shares rose 4.0% to close at ₹2,964 following the release of its quarterly results. Revenue of ₹3.0b surpassed estimates by 3.2%, although statutory earnings per share missed badly, coming in 23% below expectations at ₹8.68 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Ethos

Taking into account the latest results, the most recent consensus for Ethos from two analysts is for revenues of ₹12.4b in 2025. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12.3b and earnings per share (EPS) of ₹43.75 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

Intriguingly,the analysts have cut their price target 9.5% to ₹3,350 showing a clear decline in sentiment around Ethos' valuation.

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. We can infer from the latest estimates that forecasts expect a continuation of Ethos'historical trends, as the 26% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 24% annually. It's clear that while Ethos' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

We have estimates for Ethos from its two analysts out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Ethos (including 1 which makes us a bit uncomfortable) .

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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.