Nuvoco Vistas Corporation Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest third-quarter earnings release from Nuvoco Vistas Corporation Limited (NSE:NUVOCO), an important milestone in the company's journey to build a stronger business. Revenues were in line with forecasts, at ₹27b, although statutory earnings per share came in 19% below what the analysts expected, at ₹1.38 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the current consensus from Nuvoco Vistas' 17 analysts is for revenues of ₹123.8b in 2027. This would reflect a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 35% to ₹14.49. In the lead-up to this report, the analysts had been modelling revenues of ₹124.2b and earnings per share (EPS) of ₹14.79 in 2027. 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.

View our latest analysis for Nuvoco Vistas

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹426, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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 Nuvoco Vistas at ₹560 per share, while the most bearish prices it at ₹330. 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.

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 Nuvoco Vistas' growth to accelerate, with the forecast 9.3% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.0% per annum 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 0.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nuvoco Vistas is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nuvoco Vistas. 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 ₹426, 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 Nuvoco Vistas. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nuvoco Vistas analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Nuvoco Vistas that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.