It's been a mediocre week for Infibeam Avenues Limited (NSE:INFIBEAM) shareholders, with the stock dropping 20% to ₹13.40 in the week since its latest full-year results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ₹13b, statutory earnings beat expectations by a notable 22%, coming in at ₹0.31 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
After the latest results, the sole analyst covering Infibeam Avenues are now predicting revenues of ₹17.1b in 2023. If met, this would reflect a huge 32% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to bounce 20% to ₹0.39. In the lead-up to this report, the analyst had been modelling revenues of ₹20.7b and earnings per share (EPS) of ₹0.58 in 2023. Indeed, we can see that the analyst is a lot more bearish about Infibeam Avenues' prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
It'll come as no surprise then, to learn that the analyst has cut their price target 35% to ₹28.00.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Infibeam Avenues' past performance and to peers in the same industry. It's clear from the latest estimates that Infibeam Avenues' rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 6.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Infibeam Avenues to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although industry data suggests that Infibeam Avenues' revenues are expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Infibeam Avenues going out as far as 2024, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Infibeam Avenues .
Valuation is complex, but we're helping make it simple.
Find out whether Infibeam Avenues 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.
Infibeam Avenues Limited, together with its subsidiaries, operates as a digital payment and e-commerce technology company that engages in the provision of digital payment solutions, data center infrastructure, and software platforms for businesses and governments to execute e-commerce transactions.
Flawless balance sheet with reasonable growth potential.