Westlife Foodworld Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a pretty great week for Westlife Foodworld Limited (NSE:WESTLIFE) shareholders, with its shares surging 10% to ₹507 in the week since its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at ₹0.04, some 33% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹7.4b. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 most recent consensus for Westlife Foodworld from 18 analysts is for revenues of ₹29.6b in 2027. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to drop 19% to ₹1.65 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹29.4b and earnings per share (EPS) of ₹1.50 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Westlife Foodworld

The consensus price target was unchanged at ₹537, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Westlife Foodworld at ₹690 per share, while the most bearish prices it at ₹450. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's clear from the latest estimates that Westlife Foodworld's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 18% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Westlife Foodworld is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Westlife Foodworld following these results. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Westlife Foodworld going out to 2029, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Westlife Foodworld (1 can't be ignored!) that we have uncovered.

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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.