Adani Ports and Special Economic Zone Limited Just Missed Earnings - But Analysts Have Updated Their Models

The yearly results for Adani Ports and Special Economic Zone Limited (NSE:ADANIPORTS) were released last week, making it a good time to revisit its performance. Revenues of ₹267b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹37.55, missing estimates by 6.7%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Adani Ports and Special Economic Zone

Taking into account the latest results, the current consensus from Adani Ports and Special Economic Zone's 17 analysts is for revenues of ₹305.6b in 2025. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 23% to ₹48.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹303.9b and earnings per share (EPS) of ₹49.00 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹1,479, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Adani Ports and Special Economic Zone at ₹1,782 per share, while the most bearish prices it at ₹1,204. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Adani Ports and Special Economic Zone's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Adani Ports and Special Economic Zone's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 19% 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) 8.2% per year. So it's pretty clear that, while Adani Ports and Special Economic Zone's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. At Simply Wall St, we have a full range of analyst estimates for Adani Ports and Special Economic Zone 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 2 warning signs for Adani Ports and Special Economic Zone that you need to be mindful 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.