Earnings Miss: Dreamfolks Services Limited Missed EPS By 15% And Analysts Are Revising Their Forecasts

Dreamfolks Services Limited (NSE:DREAMFOLKS) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. Although revenues beat expectations, hitting ₹3.2b, statutory earnings missed analyst forecasts by 15%, coming in at just ₹3.14 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Dreamfolks Services

Taking into account the latest results, the consensus forecast from Dreamfolks Services' twin analysts is for revenues of ₹13.6b in 2025. This reflects a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to ₹15.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹13.6b and earnings per share (EPS) of ₹16.80 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹612, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dreamfolks Services' past performance and to peers in the same industry. We would highlight that Dreamfolks Services' revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 35% 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) 7.8% per year. Even after the forecast slowdown in growth, it seems obvious that Dreamfolks Services is also expected to grow faster than the wider 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. 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 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Dreamfolks Services going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Dreamfolks Services is showing 1 warning sign in our investment analysis , 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.