Earnings Update: Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) released its first-quarter result to the market. The early response was not positive, with shares down 3.9% to ₹250 in the past week. It looks like the results were a bit of a negative overall. While revenues of ₹22b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.4% to hit ₹2.18 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store 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.

Following the latest results, Crompton Greaves Consumer Electricals' 30 analysts are now forecasting revenues of ₹92.1b in 2027. This would be a notable 11% improvement in revenue compared to the last 12 months. Crompton Greaves Consumer Electricals is also expected to turn profitable, with statutory earnings of ₹9.25 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹92.8b and earnings per share (EPS) of ₹9.47 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.

See our latest analysis for Crompton Greaves Consumer Electricals

The consensus price target held steady at ₹340, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Crompton Greaves Consumer Electricals, with the most bullish analyst valuing it at ₹410 and the most bearish at ₹285 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Crompton Greaves Consumer Electricals' past performance and to peers in the same industry. The analysts are definitely expecting Crompton Greaves Consumer Electricals' growth to accelerate, with the forecast 14% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Crompton Greaves Consumer Electricals is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Crompton Greaves Consumer Electricals going out to 2029, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Crompton Greaves Consumer Electricals that you should be aware of.

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.