Earnings Miss: SAMHI Hotels Limited Missed EPS By 51% And Analysts Are Revising Their Forecasts
Shareholders might have noticed that SAMHI Hotels Limited (NSE:SAMHI) filed its quarterly result this time last week. The early response was not positive, with shares down 4.4% to ₹174 in the past week. Results overall were not great, with earnings of ₹1.12 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹3.1b and were slightly better than forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from SAMHI Hotels' six analysts is for revenues of ₹14.2b in 2027. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plummet 59% to ₹9.37 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹14.1b and earnings per share (EPS) of ₹10.09 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for SAMHI Hotels
The consensus price target held steady at ₹232, 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. There are some variant perceptions on SAMHI Hotels, with the most bullish analyst valuing it at ₹275 and the most bearish at ₹199 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 16% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although SAMHI Hotels is expected to maintain its revenue growth rate, it's forecast to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
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 estimates - from multiple SAMHI Hotels analysts - going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for SAMHI Hotels you should be aware of, and 2 of them are a bit concerning.
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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.