Dreamfolks Services Limited Just Missed Earnings - But Analysts Have Updated Their Models

Dreamfolks Services Limited (NSE:DREAMFOLKS) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹3.2b, statutory earnings missed forecasts by 19%, coming in at just ₹2.94 per share. 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 Dreamfolks Services

Taking into account the latest results, the current consensus from Dreamfolks Services' dual analysts is for revenues of ₹13.1b in 2025. This would reflect a satisfactory 6.8% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹13.30, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹13.6b and earnings per share (EPS) of ₹16.20 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 16% to ₹537, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Dreamfolks Services' revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 24% 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) 7.4% per year. So it's pretty clear that, while Dreamfolks Services' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dreamfolks Services. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Dreamfolks Services' future valuation.

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 Dreamfolks Services going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Dreamfolks Services has 2 warning signs (and 1 which is a bit concerning) we think 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.