Earnings Update: GMR Airports Limited (NSE:GMRINFRA) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

GMR Airports Limited (NSE:GMRINFRA) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to ₹77.94 in the week after its latest second-quarter results. The results look positive overall; while revenues of ₹25b were in line with analyst predictions, statutory losses were 3.3% smaller than expected, with GMR Airports losing ₹0.29 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for GMR Airports

Taking into account the latest results, the current consensus from GMR Airports' three analysts is for revenues of ₹105.0b in 2025. This would reflect a meaningful 9.8% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to ₹0.78. Before this earnings announcement, the analysts had been modelling revenues of ₹106.5b and losses of ₹0.83 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

The average price target held steady at ₹84.33, seeming to indicate that business is performing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values GMR Airports at ₹110 per share, while the most bearish prices it at ₹74.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GMR Airports' past performance and to peers in the same industry. It's clear from the latest estimates that GMR Airports' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that GMR Airports is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. 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. The consensus price target held steady at ₹84.33, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for GMR Airports going out to 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 GMR Airports , 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.