Earnings Miss: Jindal Saw Limited Missed EPS By 46% And Analysts Are Revising Their Forecasts
The analysts might have been a bit too bullish on Jindal Saw Limited (NSE:JINDALSAW), given that the company fell short of expectations when it released its first-quarter results last week. Results showed a clear earnings miss, with ₹45b revenue coming in 3.0% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.63 missed the mark badly, arriving some 46% below what was expected. 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, Jindal Saw's dual analysts currently expect revenues in 2027 to be ₹183.8b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 35% to ₹13.85. In the lead-up to this report, the analysts had been modelling revenues of ₹185.4b and earnings per share (EPS) of ₹15.60 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 Jindal Saw
The consensus price target held steady at ₹323, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Jindal Saw's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Jindal Saw is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹323, 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 least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Jindal Saw that you should be aware 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.