DLF Limited Just Missed Revenue By 33%: Here's What Analysts Think Will Happen Next
DLF Limited (NSE:DLF) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Earnings missed the mark, with revenues of ₹13b coming up 33% short, and statutory earnings per share of ₹3.21 missing estimates by 18%. 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 DLF after the latest results.
Taking into account the latest results, the current consensus from DLF's 22 analysts is for revenues of ₹100.5b in 2027. This would reflect a major 49% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 15% to ₹20.57. Before this earnings report, the analysts had been forecasting revenues of ₹100.5b and earnings per share (EPS) of ₹20.70 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 DLF
The analysts reconfirmed their price target of ₹812, showing that the business is executing well and in line with expectations. 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 DLF at ₹1,000 per share, while the most bearish prices it at ₹676. 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 DLF's rate of growth is expected to accelerate meaningfully, with the forecast 70% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect DLF 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for DLF 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 DLF 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.