Tata Consumer Products Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Tata Consumer Products Limited (NSE:TATACONSUM) shareholders are probably feeling a little disappointed, since its shares fell 5.8% to ₹1,107 in the week after its latest third-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹51b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.8% to hit ₹3.88 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Tata Consumer Products' 28 analysts is for revenues of ₹221.7b in 2027. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 39% to ₹20.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹219.2b and earnings per share (EPS) of ₹20.79 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 Tata Consumer Products

There were no changes to revenue or earnings estimates or the price target of ₹1,314, 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. Currently, the most bullish analyst values Tata Consumer Products at ₹1,500 per share, while the most bearish prices it at ₹1,100. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tata Consumer Products shareholders.

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 Tata Consumer Products'historical trends, as the 11% annualised revenue growth to the end of 2027 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.8% annually. It's clear that while Tata Consumer Products' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹1,314, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tata Consumer Products going out to 2028, and you can see them free on our platform here..

You can also view our analysis of Tata Consumer Products' balance sheet, and whether we think Tata Consumer Products is carrying too much debt, for free on our platform here.

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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.