Gateway Distriparks Limited Just Recorded A 659% EPS Beat: Here's What Analysts Are Forecasting Next

Last week saw the newest third-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 ₹4.0b were what the analysts expected, Gateway Distriparks surprised by delivering a (statutory) profit of ₹9.11 per share, an impressive 659% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Gateway Distriparks

After the latest results, the ten analysts covering Gateway Distriparks are now predicting revenues of ₹17.2b in 2026. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 56% to ₹5.46 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹17.4b and earnings per share (EPS) of ₹5.65 in 2026. 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 ₹107, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Gateway Distriparks analyst has a price target of ₹147 per share, while the most pessimistic values it at ₹83.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Gateway Distriparks' growth to accelerate, with the forecast 10% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Gateway Distriparks is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gateway Distriparks. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 estimates - from multiple Gateway Distriparks analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Gateway Distriparks (1 makes us a bit uncomfortable!) that you should be aware 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.