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華爾街日報Bajaj Electricals Limited Just Missed Earnings; Here's What Analysts Are Forecasting Now
Bajaj Electricals Limited (NSE:BAJAJELEC) shareholders are probably feeling a little disappointed, since its shares fell 6.2% to ₹390 in the week after its latest third-quarter results. It looks like a pretty bad result, given that revenues fell 13% short of analyst estimates at ₹11b, and the company reported a statutory loss of ₹2.95 per share instead of the profit that the analysts had been forecasting. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Bajaj Electricals' ten analysts is for revenues of ₹52.0b in 2027. This would reflect a meaningful 16% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 347% to ₹13.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹53.4b and earnings per share (EPS) of ₹16.06 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
View our latest analysis for Bajaj Electricals
It'll come as no surprise then, to learn that the analysts have cut their price target 12% to ₹485. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Bajaj Electricals at ₹838 per share, while the most bearish prices it at ₹358. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 Bajaj Electricals is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2027. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like Bajaj Electricals is expected to grow at about the same rate as the wider industry.
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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Bajaj Electricals' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Bajaj Electricals. Long-term earnings power is much more important than next year's profits. We have forecasts for Bajaj Electricals going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Bajaj Electricals has 4 warning signs (and 1 which is a bit concerning) we think you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.