Bharti Airtel Limited Just Recorded A 10% EPS Beat: Here's What Analysts Are Forecasting Next

Bharti Airtel Limited (NSE:BHARTIARTL) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to ₹1,442 in the week after its latest first-quarter results. Revenues were ₹385b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹6.98 were also better than expected, beating analyst predictions by 10%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bharti Airtel after the latest results.

Check out our latest analysis for Bharti Airtel

After the latest results, the 33 analysts covering Bharti Airtel are now predicting revenues of ₹1.69t in 2025. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 120% to ₹36.17. In the lead-up to this report, the analysts had been modelling revenues of ₹1.70t and earnings per share (EPS) of ₹35.24 in 2025. So the consensus seems to have become somewhat more optimistic on Bharti Airtel's earnings potential following these results.

There's been no major changes to the consensus price target of ₹1,536, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bharti Airtel analyst has a price target of ₹1,760 per share, while the most pessimistic values it at ₹990. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bharti Airtel shareholders.

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. It's clear from the latest estimates that Bharti Airtel's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bharti Airtel to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bharti Airtel's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Bharti Airtel analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Bharti Airtel (1 doesn't sit too well with us) you should be aware of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com