RateGain Travel Technologies Limited Just Missed Earnings - But Analysts Have Updated Their Models

RateGain Travel Technologies Limited (NSE:RATEGAIN) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to ₹718 in the week after its latest first-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹2.6b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.9% to hit ₹3.81 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for RateGain Travel Technologies

Taking into account the latest results, the most recent consensus for RateGain Travel Technologies from six analysts is for revenues of ₹11.4b in 2025. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 24% to ₹17.50. Before this earnings report, the analysts had been forecasting revenues of ₹11.5b and earnings per share (EPS) of ₹17.63 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹933, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values RateGain Travel Technologies at ₹1,010 per share, while the most bearish prices it at ₹840. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting RateGain Travel Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that RateGain Travel Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 52% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 15% per year. Even after the forecast slowdown in growth, it seems obvious that RateGain Travel Technologies is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 estimates - from multiple RateGain Travel Technologies analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for RateGain Travel Technologies that you need to be mindful of.

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.