Krishna Institute of Medical Sciences Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Krishna Institute of Medical Sciences Limited (NSE:KIMS) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenue of ₹12b surpassed estimates by 2.7%, although statutory earnings per share missed badly, coming in 39% below expectations at ₹1.04 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 16 analysts covering Krishna Institute of Medical Sciences are now predicting revenues of ₹51.5b in 2027. If met, this would reflect a substantial 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 82% to ₹9.31. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹50.7b and earnings per share (EPS) of ₹10.80 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
Check out our latest analysis for Krishna Institute of Medical Sciences
The consensus price target held steady at ₹847, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Krishna Institute of Medical Sciences at ₹1,000 per share, while the most bearish prices it at ₹740. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Krishna Institute of Medical Sciences shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Krishna Institute of Medical Sciences' rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 20% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Krishna Institute of Medical Sciences to grow faster than the wider industry.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹847, 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 Krishna Institute of Medical Sciences. 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 Krishna Institute of Medical Sciences going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Krishna Institute of Medical Sciences (including 1 which can't be ignored) .
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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.