Gateway Distriparks Limited Just Recorded A 9.1% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Gateway Distriparks Limited (NSE:GATEWAY) filed its interim result this time last week. The early response was not positive, with shares down 5.8% to ₹83.40 in the past week. Gateway Distriparks reported ₹7.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹1.20 beat expectations, being 9.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Gateway Distriparks

Taking into account the latest results, the most recent consensus for Gateway Distriparks from nine analysts is for revenues of ₹15.6b in 2025. If met, it would imply an okay 3.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 3.5% to ₹4.74. In the lead-up to this report, the analysts had been modelling revenues of ₹16.0b and earnings per share (EPS) of ₹4.99 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹111, suggesting the downgrades are not expected to have a long-term impact on Gateway Distriparks' 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 ₹90.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.1% growth on an annualised basis. That is in line with its 7.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 12% annually. So it's pretty clear that Gateway Distriparks is expected to grow slower than similar companies in the same industry.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹111, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Gateway Distriparks. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Gateway Distriparks analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Gateway Distriparks has 1 warning sign we think 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.