ITC Hotels Limited (NSE:ITCHOTELS) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

ITC Hotels Limited (NSE:ITCHOTELS) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to ₹172 in the week after its latest first-quarter results. ITC Hotels reported in line with analyst predictions, delivering revenues of ₹9.4b and statutory earnings per share of ₹3.92, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ITC Hotels after the latest results.

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Taking into account the latest results, the current consensus from ITC Hotels' 14 analysts is for revenues of ₹46.7b in 2027. This would reflect a meaningful 9.6% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 20% to ₹4.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹45.8b and earnings per share (EPS) of ₹4.79 in 2027. So the consensus seems to have become somewhat more optimistic on ITC Hotels' earnings potential following these results.

View our latest analysis for ITC Hotels

There's been no major changes to the consensus price target of ₹213, 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 ITC Hotels at ₹236 per share, while the most bearish prices it at ₹189. This is a very narrow spread of estimates, implying either that ITC Hotels is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of ITC Hotels'historical trends, as the 13% annualised revenue growth to the end of 2027 is roughly in line with the 16% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So although ITC Hotels is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ITC Hotels' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on ITC Hotels. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ITC Hotels going out to 2029, and you can see them free on our platform here..

You can also see our analysis of ITC Hotels' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.