Earnings Update: Dreamfolks Services Limited (NSE:DREAMFOLKS) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Dreamfolks Services Limited (NSE:DREAMFOLKS) filed its full-year result this time last week. The early response was not positive, with shares down 9.2% to ₹477 in the past week. It was a credible result overall, with revenues of ₹11b and statutory earnings per share of ₹12.61 both in line with analyst estimates, showing that Dreamfolks Services is executing in line with expectations. 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. 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

Following the latest results, Dreamfolks Services' dual analysts are now forecasting revenues of ₹13.6b in 2025. This would be a notable 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 29% to ₹16.80. Before this earnings report, the analysts had been forecasting revenues of ₹13.5b and earnings per share (EPS) of ₹17.60 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 minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹622, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Dreamfolks Services' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.9% annually. 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. 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 analyst estimates for Dreamfolks Services going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Dreamfolks Services (at least 1 which is a bit concerning) , and understanding these should be part of your investment process.

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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.