Stock Analysis

FSN E-Commerce Ventures Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

NSEI:NYKAA
Source: Shutterstock

FSN E-Commerce Ventures Limited (NSE:NYKAA) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to ₹168 in the week after its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of ₹64b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 31% to hit ₹0.11 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for FSN E-Commerce Ventures

earnings-and-revenue-growth
NSEI:NYKAA Earnings and Revenue Growth May 25th 2024

Following the latest results, FSN E-Commerce Ventures' 21 analysts are now forecasting revenues of ₹81.6b in 2025. This would be a huge 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 548% to ₹0.73. In the lead-up to this report, the analysts had been modelling revenues of ₹80.8b and earnings per share (EPS) of ₹0.76 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹185, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values FSN E-Commerce Ventures at ₹250 per share, while the most bearish prices it at ₹135. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 28% annual growth 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 revenues grow 21% per year. So although FSN E-Commerce Ventures is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹185, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for FSN E-Commerce Ventures going out to 2027, and you can see them free on our platform here.

You can also see whether FSN E-Commerce Ventures is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Valuation is complex, but we're helping make it simple.

Find out whether FSN E-Commerce Ventures is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.