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Earnings Miss: RateGain Travel Technologies Limited Missed EPS By 10% And Analysts Are Revising Their Forecasts
As you might know, RateGain Travel Technologies Limited (NSE:RATEGAIN) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹7.5b, statutory earnings missed forecasts by 10%, coming in at just ₹6.30 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, RateGain Travel Technologies' twelve analysts are now forecasting revenues of ₹31.5b in 2027. This would be a decent 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 34% to ₹30.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹31.5b and earnings per share (EPS) of ₹30.20 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.
See our latest analysis for RateGain Travel Technologies
There were no changes to revenue or earnings estimates or the price target of ₹1,059, suggesting that the company has met expectations in its recent result. 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 RateGain Travel Technologies at ₹1,200 per share, while the most bearish prices it at ₹650. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 38% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that RateGain Travel Technologies is forecast to grow substantially faster than its industry.
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. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple RateGain Travel Technologies analysts - going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for RateGain Travel Technologies that we have uncovered.
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