Route Mobile Limited Just Recorded A 15% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Route Mobile Limited (NSE:ROUTE) recently reported its quarterly numbers. Revenues ₹10b disappointed slightly, at6.1% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹16.66 coming in 15% above what was anticipated. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Route Mobile

After the latest results, the three analysts covering Route Mobile are now predicting revenues of ₹48.8b in 2025. If met, this would reflect a substantial 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to ₹69.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.0b and earnings per share (EPS) of ₹72.20 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹1,847 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic Route Mobile analyst has a price target of ₹1,930 per share, while the most pessimistic values it at ₹1,750. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Route Mobile's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 15% annually. So it's pretty clear that, while Route Mobile's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts 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 as we saw earlier, forecast growth is only expected to be about the same as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Route Mobile. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Route Mobile analysts - 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 1 warning sign for Route Mobile 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.