Earnings Miss: CIE Automotive India Limited Missed EPS By 5.4% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that CIE Automotive India Limited (NSE:CIEINDIA) filed its third-quarter result this time last week. The early response was not positive, with shares down 6.8% to ₹352 in the past week. It looks like the results were a bit of a negative overall. While revenues of ₹26b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.4% to hit ₹6.43 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for CIE Automotive India from five analysts is for revenues of ₹111.9b in 2027. If met, it would imply a notable 9.0% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 13% to ₹27.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹112.3b and earnings per share (EPS) of ₹28.50 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.

Check out our latest analysis for CIE Automotive India

The average price target fell 5.5% to ₹465, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. The most optimistic CIE Automotive India analyst has a price target of ₹514 per share, while the most pessimistic values it at ₹384. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CIE Automotive India is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that CIE Automotive India's rate of growth is expected to accelerate meaningfully, with the forecast 7.2% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, CIE Automotive India is expected to grow slower than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 CIE Automotive India going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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