The LTM Limited (NSE:LTM) First-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for LTM Limited (NSE:LTM) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.3% to ₹4,063. LTM reported in line with analyst predictions, delivering revenues of ₹116b and statutory earnings per share of ₹49.42, suggesting the business is executing well and in line with its plan. 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.

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Taking into account the latest results, the consensus forecast from LTM's 38 analysts is for revenues of ₹481.4b in 2027. This reflects a solid 9.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 17% to ₹207. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹476.2b and earnings per share (EPS) of ₹208 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for LTM

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹4,388. 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. Currently, the most bullish analyst values LTM at ₹6,217 per share, while the most bearish prices it at ₹3,360. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that LTM's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2027 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% annually. Even after the forecast slowdown in growth, it seems obvious that LTM is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 ₹4,388, 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 LTM. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple LTM analysts - going out to 2029, and you can see them free on our platform here.

Even so, be aware that LTM is showing 1 warning sign in our investment analysis , you should know about...

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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.