JSW Energy Limited Just Recorded A 106% EPS Beat: Here's What Analysts Are Forecasting Next
JSW Energy Limited (NSE:JSWENERGY) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of ₹52b, some 8.8% above estimates, and statutory earnings per share (EPS) coming in at ₹2.57, 106% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the 21 analysts covering JSW Energy are now predicting revenues of ₹227.6b in 2027. If met, this would reflect a major 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 29% to ₹13.85. Before this earnings report, the analysts had been forecasting revenues of ₹230.9b and earnings per share (EPS) of ₹14.19 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for JSW Energy
The consensus price target held steady at ₹615, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on JSW Energy, with the most bullish analyst valuing it at ₹720 and the most bearish at ₹475 per share. 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.
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. It's clear from the latest estimates that JSW Energy's rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that JSW Energy is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for JSW Energy. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹615, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for JSW Energy going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for JSW Energy (1 makes us a bit uncomfortable!) that you need to be mindful of.
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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.