Trent Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Trent Limited (NSE:TRENT) had a good week, as its shares rose 4.5% to close at ₹4,410 following the release of its yearly results. It looks like a credible result overall - although revenues of ₹127b were what the analysts expected, Trent surprised by delivering a (statutory) profit of ₹41.82 per share, an impressive 51% above what was forecast. 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.

View our latest analysis for Trent

Taking into account the latest results, the current consensus from Trent's 14 analysts is for revenues of ₹173.2b in 2025. This would reflect a substantial 37% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹42.21, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹170.0b and earnings per share (EPS) of ₹38.81 in 2025. So the consensus seems to have become somewhat more optimistic on Trent's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 14% to ₹4,356. 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 Trent at ₹5,041 per share, while the most bearish prices it at ₹2,546. 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. We can infer from the latest estimates that forecasts expect a continuation of Trent'shistorical trends, as the 37% annualised revenue growth to the end of 2025 is roughly in line with the 35% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 21% annually. So although Trent is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Trent's earnings potential next year. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Trent analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Trent that you need to take into consideration.

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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.