SJVN Limited (NSE:SJVN) Just Missed Earnings: Here's What Analysts Think Will Happen Next

SJVN Limited (NSE:SJVN) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Earnings fell badly short of analyst estimates, with ₹6.7b revenues missing by 17%, and statutory earnings per share (EPS) of ₹0.74 falling short of forecasts by some -18%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for SJVN

Taking into account the latest results, the consensus forecast from SJVN's four analysts is for revenues of ₹32.0b in 2024. This reflects a major 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 42% to ₹3.70. Before this earnings report, the analysts had been forecasting revenues of ₹31.7b and earnings per share (EPS) of ₹3.55 in 2024. So the consensus seems to have become somewhat more optimistic on SJVN's earnings potential following these results.

There's been no major changes to the consensus price target of ₹49.38, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values SJVN at ₹57.50 per share, while the most bearish prices it at ₹44.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting SJVN's growth to accelerate, with the forecast 31% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.0% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SJVN is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SJVN's earnings potential 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple SJVN analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for SJVN (1 is significant!) that you need to be mindful 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.