Alivus Life Sciences Limited Just Recorded A 7.5% EPS Beat: Here's What Analysts Are Forecasting Next
Investors in Alivus Life Sciences Limited (NSE:ALIVUS) had a good week, as its shares rose 5.3% to close at ₹1,160 following the release of its first-quarter results. Alivus Life Sciences missed revenue estimates by 5.8%, coming in at₹6.4b, although statutory earnings per share (EPS) of ₹13.01 beat expectations, coming in 7.5% ahead of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alivus Life Sciences after the latest results.
Taking into account the latest results, the current consensus from Alivus Life Sciences' four analysts is for revenues of ₹28.4b in 2027. This would reflect a decent 9.5% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 14% to ₹55.90. In the lead-up to this report, the analysts had been modelling revenues of ₹28.1b and earnings per share (EPS) of ₹52.18 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Alivus Life Sciences
The consensus price target rose 7.2% to ₹1,335, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Alivus Life Sciences at ₹1,375 per share, while the most bearish prices it at ₹1,235. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Alivus Life Sciences' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Alivus Life Sciences is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Alivus Life Sciences' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Alivus Life Sciences. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Alivus Life Sciences analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Alivus Life Sciences is showing 1 warning sign in our investment analysis , you should know about...
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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.