Results: ICRA Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
It's been a good week for ICRA Limited (NSE:ICRA) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.1% to ₹4,904. Revenues ₹1.6b disappointed slightly, at2.2% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹58.27 coming in 13% above what was anticipated. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ICRA after the latest results.
Taking into account the latest results, the consensus forecast from ICRA's two analysts is for revenues of ₹7.20b in 2027. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 11% to ₹225. In the lead-up to this report, the analysts had been modelling revenues of ₹7.28b and earnings per share (EPS) of ₹225 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for ICRA
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹6,509.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that ICRA's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. ICRA is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for ICRA going out as far as 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for ICRA 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.