Earnings Beat: ICICI Lombard General Insurance Company Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, ICICI Lombard General Insurance Company Limited (NSE:ICICIGI) just kicked off its latest quarterly results with some very strong numbers. ICICI Lombard General Insurance delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹78b-14% above indicated-and₹18.85-34% above forecasts- respectively 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, ICICI Lombard General Insurance's 23 analysts currently expect revenues in 2027 to be ₹292.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 8.5% to ₹55.49. Before this earnings report, the analysts had been forecasting revenues of ₹286.9b and earnings per share (EPS) of ₹56.23 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.

View our latest analysis for ICICI Lombard General Insurance

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,902. 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. There are some variant perceptions on ICICI Lombard General Insurance, with the most bullish analyst valuing it at ₹2,175 and the most bearish at ₹1,400 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ICICI Lombard General Insurance shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that ICICI Lombard General Insurance's revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2027 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that ICICI Lombard General Insurance is also expected to grow slower than other industry participants.

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. 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 in mind, we wouldn't be too quick to come to a conclusion on ICICI Lombard General Insurance. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ICICI Lombard General Insurance going out to 2029, and you can see them free on our platform here..

Even so, be aware that ICICI Lombard General Insurance is showing 1 warning sign in our investment analysis , you should know about...

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