Neuland Laboratories Limited Just Missed Revenue By 9.3%: Here's What Analysts Think Will Happen Next

Investors in Neuland Laboratories Limited (NSE:NEULANDLAB) had a good week, as its shares rose 2.6% to close at ₹19,783 following the release of its quarterly results. Revenues came in 9.3% below expectations, at ₹4.5b. Statutory earnings per share were relatively better off, with a per-share profit of ₹284 being roughly in line with analyst estimates. 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.

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Following last week's earnings report, Neuland Laboratories' five analysts are forecasting 2027 revenues to be ₹23.2b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 5.3% to ₹334 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹24.2b and earnings per share (EPS) of ₹373 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

See our latest analysis for Neuland Laboratories

Despite the cuts to forecast earnings, there was no real change to the ₹24,829 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on Neuland Laboratories, with the most bullish analyst valuing it at ₹25,834 and the most bearish at ₹24,114 per share. This is a very narrow spread of estimates, implying either that Neuland Laboratories is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Neuland Laboratories' revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2027 being well below the historical 17% 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 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Neuland Laboratories is also expected to grow slower than other industry participants.

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. 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. 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 Neuland Laboratories. 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 Neuland Laboratories going out to 2029, and you can see them free on our platform here..

We also provide an overview of the Neuland Laboratories Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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