Gateway Distriparks Limited Just Beat EPS By 5.5%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Gateway Distriparks Limited (NSE:GATEWAY) released its quarterly result to the market. The early response was not positive, with shares down 8.8% to ₹42.87 in the past week. Gateway Distriparks reported ₹5.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹1.16 beat expectations, being 5.5% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Gateway Distriparks from four analysts is for revenues of ₹22.9b in 2027. If met, it would imply a modest 2.9% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹4.70, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹23.4b and earnings per share (EPS) of ₹4.65 in 2027. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
Check out our latest analysis for Gateway Distriparks
The average price target was steady at ₹78.80even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Gateway Distriparks at ₹94.00 per share, while the most bearish prices it at ₹67.00. 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.
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. It's pretty clear that there is an expectation that Gateway Distriparks' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Gateway Distriparks is also expected to grow slower than other industry participants.
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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Gateway Distriparks analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Gateway Distriparks that you need to take into consideration.
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