Earnings Miss: Ventive Hospitality Limited Missed EPS By 57% And Analysts Are Revising Their Forecasts
Ventive Hospitality Limited (NSE:VENTIVE) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were not great, with earnings of ₹1.00 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹5.5b and were slightly better than forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Ventive Hospitality's eight analysts are now forecasting revenues of ₹27.0b in 2027. This would be a credible 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 26% to ₹14.30 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹27.1b and earnings per share (EPS) of ₹19.34 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 pretty serious reduction to EPS estimates.
See our latest analysis for Ventive Hospitality
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹743, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ventive Hospitality at ₹840 per share, while the most bearish prices it at ₹700. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Ventive Hospitality is an easy business to forecast or the the analysts are all using similar assumptions.
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 pretty clear that there is an expectation that Ventive Hospitality's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 38% 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 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that Ventive Hospitality is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ventive Hospitality. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ventive Hospitality's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹743, 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 Ventive Hospitality going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Ventive Hospitality's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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