Stock Analysis

Revenue Beat: Netweb Technologies India Limited Beat Analyst Estimates By 13%

NSEI:NETWEB
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Shareholders might have noticed that Netweb Technologies India Limited (NSE:NETWEB) filed its quarterly result this time last week. The early response was not positive, with shares down 3.4% to ₹2,390 in the past week. It was a mildly positive result, with revenues exceeding expectations at ₹1.5b, while statutory earnings per share (EPS) of ₹13.88 were in line with analyst forecasts. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Netweb Technologies India

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NSEI:NETWEB Earnings and Revenue Growth July 24th 2024

Taking into account the latest results, the consensus forecast from Netweb Technologies India's twin analysts is for revenues of ₹10.8b in 2025. This reflects a substantial 32% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 41% to ₹21.70. In the lead-up to this report, the analysts had been modelling revenues of ₹10.8b and earnings per share (EPS) of ₹17.60 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 17% to ₹2,665.

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 would highlight that Netweb Technologies India's revenue growth is expected to slow, with the forecast 45% annualised growth rate until the end of 2025 being well below the historical 87% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. Even after the forecast slowdown in growth, it seems obvious that Netweb Technologies India is also expected to grow faster than the wider 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 Netweb Technologies India following these results. 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Netweb Technologies India going out as far as 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're helping make it simple.

Find out whether Netweb Technologies India 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.

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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.

Valuation is complex, but we're helping make it simple.

Find out whether Netweb Technologies India 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@simplywallst.com