Earnings Miss: KSB Limited Missed EPS By 5.9% And Analysts Are Revising Their Forecasts

KSB Limited (NSE:KSB) shareholders are probably feeling a little disappointed, since its shares fell 3.4% to ₹629 in the week after its latest third-quarter results. It was a pretty mixed result, with revenues beating expectations to hit ₹7.7b. Statutory earnings fell 5.9% short of analyst forecasts, reaching ₹3.48 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the twin analysts covering KSB are now predicting revenues of ₹33.3b in 2027. If met, this would reflect a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 42% to ₹19.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹33.5b and earnings per share (EPS) of ₹22.95 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Check out our latest analysis for KSB

It might be a surprise to learn that the consensus price target fell 13% to ₹819, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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. We can infer from the latest estimates that forecasts expect a continuation of KSB'shistorical trends, as the 14% annualised revenue growth to the end of 2027 is roughly in line with the 13% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although KSB is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for KSB. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on KSB. Long-term earnings power is much more important than next year's profits. We have analyst estimates for KSB going out as far as 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for KSB that you need to take into consideration.

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