Analysts Have Lowered Expectations For Yatra Online, Inc. (NASDAQ:YTRA) After Its Latest Results

Yatra Online, Inc. (NASDAQ:YTRA) just released its latest full-year report and things are not looking great. Unfortunately, Yatra Online delivered a serious earnings miss. Revenues of ₹1.3b were 10% below expectations, and statutory losses ballooned 47% to ₹20.38 per share. Following the result, the analyst has 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Yatra Online

Taking into account the latest results, the most recent consensus for Yatra Online from one analyst is for revenues of ₹3.43b in 2022 which, if met, would be a substantial 170% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 55% to ₹6.47. Before this earnings announcement, the analyst had been modelling revenues of ₹4.33b and losses of ₹5.27 per share in 2022. There's been a definite change in sentiment in this update, with the analyst administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

The average price target was broadly unchanged at US$3.80, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yatra Online's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Yatra Online is forecast to grow faster in the future than it has in the past, with revenues expected to display 170% annualised growth until the end of 2022. If achieved, this would be a much better result than the 15% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 21% annually. So it looks like Yatra Online is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Yatra Online. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Yatra Online that you should be aware of.

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