TD Power Systems Limited Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders will be ecstatic, with their stake up 21% over the past week following TD Power Systems Limited's (NSE:TDPOWERSYS) latest quarterly results. TD Power Systems reported revenues of ₹6.4b, which blew past expectations. Statutory earnings per share (EPS) of ₹5.52 came in 8.0% short of forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from TD Power Systems' two analysts is for revenues of ₹26.6b in 2027. This would reflect a major 25% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 34% to ₹23.65. Before this earnings report, the analysts had been forecasting revenues of ₹24.1b and earnings per share (EPS) of ₹21.15 in 2027. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Check out our latest analysis for TD Power Systems

With these upgrades, we're not surprised to see that the analysts have lifted their price target 25% to ₹1,776per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting TD Power Systems' growth to accelerate, with the forecast 35% annualised growth to the end of 2027 ranking favourably alongside historical growth of 21% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TD Power Systems is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TD Power Systems' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on TD Power Systems. Long-term earnings power is much more important than next year's profits. We have analyst estimates for TD Power Systems going out as far as 2028, 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 TD Power Systems 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.