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Zee Entertainment Enterprises Limited Just Missed EPS By 33%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Zee Entertainment Enterprises Limited (NSE:ZEEL) released its second-quarter result to the market. The early response was not positive, with shares down 4.1% to ₹61.58 in the past week. Revenue of ₹22b surpassed estimates by 2.8%, although statutory earnings per share missed badly, coming in 33% below expectations at ₹0.50 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.
Following last week's earnings report, Zee Entertainment Enterprises' twelve analysts are forecasting 2027 revenues to be ₹85.2b, approximately in line with the last 12 months. Per-share earnings are expected to surge 209% to ₹5.70. In the lead-up to this report, the analysts had been modelling revenues of ₹84.7b and earnings per share (EPS) of ₹6.45 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
See our latest analysis for Zee Entertainment Enterprises
The average price target fell 13% to ₹87.67, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Zee Entertainment Enterprises at ₹113 per share, while the most bearish prices it at ₹65.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Zee Entertainment Enterprises' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.1% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 0.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.6% annually for the foreseeable future. Although Zee Entertainment Enterprises' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zee Entertainment Enterprises. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zee Entertainment Enterprises' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Zee Entertainment Enterprises. 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 Zee Entertainment Enterprises going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for Zee Entertainment Enterprises you should know about.
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