Motherson Sumi Wiring India Limited Just Missed EPS By 30%: Here's What Analysts Think Will Happen Next
As you might know, Motherson Sumi Wiring India Limited (NSE:MSUMI) recently reported its first-quarter numbers. Revenue of ₹34b surpassed estimates by 4.1%, although statutory earnings per share missed badly, coming in 30% below expectations at ₹0.22 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Motherson Sumi Wiring India from 14 analysts is for revenues of ₹139.3b in 2027. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 19% to ₹1.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹133.2b and earnings per share (EPS) of ₹1.17 in 2027. So it's pretty clear consensus is mixed on Motherson Sumi Wiring India after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.
Check out our latest analysis for Motherson Sumi Wiring India
There's been no major changes to the price target of ₹48.46, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Motherson Sumi Wiring India at ₹60.00 per share, while the most bearish prices it at ₹38.00. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 16% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Motherson Sumi Wiring India is expected to maintain its revenue growth rate, it's definitely expected 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹48.46, with the latest estimates not enough to have an impact on their price targets.
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 forecasts for Motherson Sumi Wiring India going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Motherson Sumi Wiring India's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.