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Earnings Miss: Lodha Developers Limited Missed EPS By 15% And Analysts Are Revising Their Forecasts
Lodha Developers Limited (NSE:LODHA) just released its latest second-quarter report and things are not looking great. Lodha Developers missed earnings this time around, with ₹45b revenue coming in 4.0% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹10.12 also fell short of expectations by 15%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Lodha Developers' 17 analysts is for revenues of ₹196.4b in 2027. This reflects a reasonable 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 2.9% to ₹42.28 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹196.5b and earnings per share (EPS) of ₹42.09 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 Lodha Developers
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,353. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Lodha Developers at ₹1,615 per share, while the most bearish prices it at ₹1,000. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Lodha Developers' revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2027 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 25% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Lodha Developers.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lodha Developers' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,353, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Lodha Developers going out to 2029, and you can see them free on our platform here..
You can also see whether Lodha Developers is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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