Tenneco Clean Air India Limited (NSE:TENNIND) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Tenneco Clean Air India Limited (NSE:TENNIND) had a good week, as its shares rose 4.6% to close at ₹563 following the release of its quarterly results. It was a workmanlike result, with revenues of ₹15b coming in 3.6% ahead of expectations, and statutory earnings per share of ₹14.95, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Tenneco Clean Air India's four analysts is for revenues of ₹63.2b in 2027. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 9.3% to ₹16.27. Before this earnings report, the analysts had been forecasting revenues of ₹62.0b and earnings per share (EPS) of ₹17.51 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 small dip in their earnings per share forecasts.

See our latest analysis for Tenneco Clean Air India

The consensus price target held steady at ₹636, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Tenneco Clean Air India at ₹700 per share, while the most bearish prices it at ₹472. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tenneco Clean Air India's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Tenneco Clean Air India'shistorical trends, as the 16% annualised revenue growth to the end of 2027 is roughly in line with the 15% 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 12% per year. So although Tenneco Clean Air India is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tenneco Clean Air India. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹636, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tenneco Clean Air India going out to 2029, and you can see them free on our platform here..

We also provide an overview of the Tenneco Clean Air India Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.