Zee Entertainment Enterprises Limited Just Missed Earnings - But Analysts Have Updated Their Models
Zee Entertainment Enterprises Limited (NSE:ZEEL) just released its latest first-quarter report and things are not looking great. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹18b missed by 10%, and statutory earnings per share of ₹1.50 fell short of forecasts by 30%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zee Entertainment Enterprises after the latest results.
Taking into account the latest results, the most recent consensus for Zee Entertainment Enterprises from 17 analysts is for revenues of ₹84.2b in 2026. If met, it would imply a satisfactory 5.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 28% to ₹9.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹87.9b and earnings per share (EPS) of ₹9.74 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
View our latest analysis for Zee Entertainment Enterprises
Despite the cuts to forecast earnings, there was no real change to the ₹147 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Zee Entertainment Enterprises at ₹190 per share, while the most bearish prices it at ₹98.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zee Entertainment Enterprises' past performance and to peers in the same industry. It's clear from the latest estimates that Zee Entertainment Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 7.3% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10.0% annually. So it's clear that despite the acceleration in growth, Zee Entertainment Enterprises is expected to grow meaningfully slower than the industry average.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zee Entertainment Enterprises. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹147, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Zee Entertainment Enterprises. Long-term earnings power is much more important than next year's profits. We have forecasts for Zee Entertainment Enterprises going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Zee Entertainment Enterprises 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.