Results: Laurus Labs Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
Laurus Labs Limited (NSE:LAURUSLABS) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of ₹20b, some 9.6% above estimates, and statutory earnings per share (EPS) coming in at ₹6.80, 34% ahead of expectations. 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 Laurus Labs after the latest results.
Following the latest results, Laurus Labs' 13 analysts are now forecasting revenues of ₹83.2b in 2027. This would be a solid 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 30% to ₹26.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹78.6b and earnings per share (EPS) of ₹20.49 in 2027. So it seems there's been a definite increase in optimism about Laurus Labs' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.
Check out our latest analysis for Laurus Labs
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to ₹1,251per share. 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. The most optimistic Laurus Labs analyst has a price target of ₹1,720 per share, while the most pessimistic values it at ₹510. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Laurus Labs' past performance and to peers in the same industry. It's clear from the latest estimates that Laurus Labs' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.3% 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 Laurus Labs to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Laurus Labs following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Laurus Labs. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Laurus Labs going out to 2029, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Laurus Labs 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.