FSN E-Commerce Ventures Limited Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that FSN E-Commerce Ventures Limited (NSE:NYKAA) filed its third-quarter result this time last week. The early response was not positive, with shares down 7.0% to ₹152 in the past week. It looks like a pretty bad result, all things considered. Although revenues of ₹18b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 54% to hit ₹0.06 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for FSN E-Commerce Ventures

After the latest results, the 22 analysts covering FSN E-Commerce Ventures are now predicting revenues of ₹80.6b in 2025. If met, this would reflect a major 34% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 709% to ₹0.79. In the lead-up to this report, the analysts had been modelling revenues of ₹81.1b and earnings per share (EPS) of ₹0.86 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 ₹178, 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. There are some variant perceptions on FSN E-Commerce Ventures, with the most bullish analyst valuing it at ₹240 and the most bearish at ₹135 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 26% 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 ₹178, 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 estimates - from multiple FSN E-Commerce Ventures analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - FSN E-Commerce Ventures has 1 warning sign we think you should be aware of.

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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.