The Consensus EPS Estimates For Infibeam Avenues Limited (NSE:INFIBEAM) Just Fell A Lot

The analyst covering Infibeam Avenues Limited (NSE:INFIBEAM) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following this downgrade, Infibeam Avenues' solo analyst are forecasting 2023 revenues to be ₹17b, approximately in line with the last 12 months. Statutory earnings per share are supposed to decline 12% to ₹0.39 in the same period. Prior to this update, the analyst had been forecasting revenues of ₹22b and earnings per share (EPS) of ₹0.45 in 2023. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a real cut to earnings per share numbers as well.

View our latest analysis for Infibeam Avenues

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Infibeam Avenues' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Infibeam Avenues.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Infibeam Avenues. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year's outlook, it's clear that the analyst has turned more bearish on Infibeam Avenues, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Infibeam Avenues going out as far as 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.