Metro Brands Limited Just Missed Earnings - But Analysts Have Updated Their Models

Metro Brands Limited (NSE:METROBRAND) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to ₹1,176 in the week after its latest half-yearly results. It looks like the results were a bit of a negative overall. While revenues of ₹12b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.1% to hit ₹2.55 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Metro Brands

After the latest results, the 20 analysts covering Metro Brands are now predicting revenues of ₹25.8b in 2025. If met, this would reflect a meaningful 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 5.1% to ₹14.46 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹26.3b and earnings per share (EPS) of ₹14.99 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹1,248, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Metro Brands, with the most bullish analyst valuing it at ₹1,525 and the most bearish at ₹875 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Metro Brands' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Metro Brands'historical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So although Metro Brands is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Metro Brands' revenue is expected to perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Metro Brands. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Metro Brands analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Metro Brands , and understanding it should be part of your investment process.

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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.