Trent Limited Just Recorded A 35% EPS Beat: Here's What Analysts Are Forecasting Next

Trent Limited (NSE:TRENT) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of ₹35b, some 6.3% above estimates, and statutory earnings per share (EPS) coming in at ₹10.53, 35% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Trent

After the latest results, the twelve analysts covering Trent are now predicting revenues of ₹165.1b in 2025. If met, this would reflect a major 47% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 53% to ₹35.98. Before this earnings report, the analysts had been forecasting revenues of ₹160.2b and earnings per share (EPS) of ₹31.68 in 2025. So it seems there's been a definite increase in optimism about Trent's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 31% to ₹3,630per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Trent, with the most bullish analyst valuing it at ₹4,453 and the most bearish at ₹2,045 per share. 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. We can infer from the latest estimates that forecasts expect a continuation of Trent'shistorical trends, as the 36% annualised revenue growth to the end of 2025 is roughly in line with the 34% 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 22% per year. So it's pretty clear that Trent is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Trent following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At Simply Wall St, we have a full range of analyst estimates for Trent going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Trent (of which 1 is concerning!) you should know about.

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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.