Earnings Report: Thomas Cook (India) Limited Missed Revenue Estimates By 15%
Investors in Thomas Cook (India) Limited (NSE:THOMASCOOK) had a good week, as its shares rose 4.7% to close at ₹105 following the release of its quarterly results. Revenues were ₹21b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹4.69 being in line with what the analysts anticipated. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Thomas Cook (India) from dual analysts is for revenues of ₹87.5b in 2027. If met, it would imply a solid 8.3% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 16% to ₹5.35. In the lead-up to this report, the analysts had been modelling revenues of ₹89.7b and earnings per share (EPS) of ₹6.60 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
View our latest analysis for Thomas Cook (India)
The consensus price target fell 21% to ₹132, with the weaker earnings outlook clearly leading valuation estimates.
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 pretty clear that there is an expectation that Thomas Cook (India)'s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Thomas Cook (India).
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Thomas Cook (India)'s future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Thomas Cook (India) going out as far as 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Thomas Cook (India) that you need to take into consideration.
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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.