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Afcons Infrastructure Limited Just Missed Earnings - But Analysts Have Updated Their Models
Afcons Infrastructure Limited (NSE:AFCONS) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with ₹26b revenue coming in 3.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.12 missed the mark badly, arriving some 38% below what was expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Afcons Infrastructure after the latest results.
Taking into account the latest results, the consensus forecast from Afcons Infrastructure's ten analysts is for revenues of ₹122.7b in 2027. This reflects a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 299% to ₹8.73. Before this earnings report, the analysts had been forecasting revenues of ₹122.7b and earnings per share (EPS) of ₹8.78 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.
Check out our latest analysis for Afcons Infrastructure
With no major changes to earnings forecasts, the consensus price target fell 11% to ₹318, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Afcons Infrastructure analyst has a price target of ₹377 per share, while the most pessimistic values it at ₹202. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. One thing stands out from these estimates, which is that Afcons Infrastructure is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2027. If achieved, this would be a much better result than the 14% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like Afcons Infrastructure is expected to grow faster than its competitors, at least for a while.
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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Afcons Infrastructure analysts - going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Afcons Infrastructure (1 is a bit concerning) you should be aware of.
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