Earnings Beat: Gateway Distriparks Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week saw the newest first-quarter earnings release from Gateway Distriparks Limited (NSE:GATEWAY), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of ₹3.4b were what the analysts expected, Gateway Distriparks surprised by delivering a (statutory) profit of ₹1.17 per share, an impressive 38% above what was forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Gateway Distriparks

After the latest results, the 13 analysts covering Gateway Distriparks are now predicting revenues of ₹15.0b in 2023. If met, this would reflect a satisfactory 5.5% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to decline 14% to ₹4.09 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹15.2b and earnings per share (EPS) of ₹4.16 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹91.85, 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. The most optimistic Gateway Distriparks analyst has a price target of ₹110 per share, while the most pessimistic values it at ₹70.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Gateway Distriparks' revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2023 being well below the historical 14% growth over the last year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Gateway Distriparks is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at ₹91.85, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Gateway Distriparks going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Gateway Distriparks that we have uncovered.

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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.