Prestige Estates Projects Limited Just Missed EPS By 45%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on Prestige Estates Projects Limited (NSE:PRESTIGE), given that the company fell short of expectations when it released its quarterly results last week. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (₹21b) coming in 30% below what they had expected. Statutory earnings per share of ₹5.20 fell 45% short. 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.

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Following the latest results, Prestige Estates Projects' 19 analysts are now forecasting revenues of ₹148.1b in 2027. This would be a meaningful 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 75% to ₹37.92. In the lead-up to this report, the analysts had been modelling revenues of ₹148.1b and earnings per share (EPS) of ₹37.92 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Prestige Estates Projects

There were no changes to revenue or earnings estimates or the price target of ₹1,906, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Prestige Estates Projects, with the most bullish analyst valuing it at ₹2,380 and the most bearish at ₹1,440 per share. 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.

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. It's clear from the latest estimates that Prestige Estates Projects' rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 25% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Prestige Estates Projects to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Prestige Estates Projects analysts - going out to 2029, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Prestige Estates Projects you should know about.

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