UTI Asset Management Company Limited Just Recorded A 41% EPS Beat: Here's What Analysts Are Forecasting Next
UTI Asset Management Company Limited (NSE:UTIAMC) just released its first-quarter report and things are looking bullish. Statutory revenue of ₹5.9b and earnings of ₹22.84 both blasted past expectations, beating expectations by 30% and 41%, respectively, ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from UTI Asset Management's 16 analysts is for revenues of ₹20.0b in 2027. This reflects a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 66% to ₹59.41. In the lead-up to this report, the analysts had been modelling revenues of ₹20.4b and earnings per share (EPS) of ₹59.35 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.
See our latest analysis for UTI Asset Management
There were no changes to revenue or earnings estimates or the price target of ₹1,078, 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 UTI Asset Management at ₹1,282 per share, while the most bearish prices it at ₹840. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that UTI Asset Management's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.7% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect UTI Asset Management to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,078, 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 UTI Asset Management. Long-term earnings power is much more important than next year's profits. We have forecasts for UTI Asset Management going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for UTI Asset Management (1 is significant) 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.