Latent View Analytics Limited Just Missed EPS By 6.0%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Latent View Analytics Limited (NSE:LATENTVIEW) shareholders, with the stock dropping 12% to ₹195 in the week since its latest second-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹2.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit ₹2.35 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Latent View Analytics' five analysts are now forecasting revenues of ₹12.0b in 2027. This would be a credible 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.7% to ₹10.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12.3b and earnings per share (EPS) of ₹10.53 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for Latent View Analytics

It'll come as no surprise then, to learn that the analysts have cut their price target 5.1% to ₹298. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Latent View Analytics, with the most bullish analyst valuing it at ₹350 and the most bearish at ₹210 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 Latent View Analytics shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Latent View Analytics' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Latent View Analytics' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 8.3% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Latent View Analytics.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Latent View Analytics. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Latent View Analytics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Latent View Analytics analysts - going out to 2029, 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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