Results: Campus Activewear Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Campus Activewear Limited (NSE:CAMPUS) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at ₹3.9b, statutory earnings beat expectations 7.5%, with Campus Activewear reporting profits of ₹0.86 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the seven analysts covering Campus Activewear are now predicting revenues of ₹20.2b in 2027. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to ₹5.63. Before this earnings report, the analysts had been forecasting revenues of ₹20.5b and earnings per share (EPS) of ₹5.68 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.

Check out our latest analysis for Campus Activewear

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹294. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Campus Activewear at ₹330 per share, while the most bearish prices it at ₹237. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Campus Activewear's past performance and to peers in the same industry. The analysts are definitely expecting Campus Activewear's growth to accelerate, with the forecast 16% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Campus Activewear is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 estimates - from multiple Campus Activewear analysts - going out to 2029, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Campus Activewear that you need to be mindful of.

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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.