V-Guard Industries Limited Just Recorded A 33% EPS Beat: Here's What Analysts Are Forecasting Next

V-Guard Industries Limited (NSE:VGUARD) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of ₹18b, some 5.9% above estimates, and statutory earnings per share (EPS) coming in at ₹2.96, 33% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on V-Guard Industries after the latest results.

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Following the latest results, V-Guard Industries' 17 analysts are now forecasting revenues of ₹68.5b in 2027. This would be a solid 8.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to ₹9.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹67.4b and earnings per share (EPS) of ₹8.98 in 2027. So the consensus seems to have become somewhat more optimistic on V-Guard Industries' earnings potential following these results.

Check out our latest analysis for V-Guard Industries

The consensus price target was unchanged at ₹394, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 V-Guard Industries at ₹470 per share, while the most bearish prices it at ₹306. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await V-Guard Industries shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the V-Guard Industries' past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So although V-Guard Industries 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 V-Guard Industries' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that V-Guard Industries' revenue is expected to 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.

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 V-Guard Industries analysts - going out to 2029, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for V-Guard Industries 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.