Neuland Laboratories Limited Beat Revenue Forecasts By 23%: Here's What Analysts Are Forecasting Next
The investors in Neuland Laboratories Limited's (NSE:NEULANDLAB) will be rubbing their hands together with glee today, after the share price leapt 20% to ₹22,855 in the week following its first-quarter results. Revenue of ₹6.4b came in a notable 23% ahead of expectations, while statutory earnings of ₹284 were in line with what the analysts had been forecasting. 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 Neuland Laboratories from four analysts is for revenues of ₹24.4b in 2027. If met, it would imply a reasonable 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to reduce 2.1% to ₹380 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹23.1b and earnings per share (EPS) of ₹327 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
View our latest analysis for Neuland Laboratories
It will come as no surprise to learn that the analysts have increased their price target for Neuland Laboratories 7.4% to ₹22,785on the back of these upgrades. 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 Neuland Laboratories, with the most bullish analyst valuing it at ₹24,112 and the most bearish at ₹20,835 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. We would highlight that Neuland Laboratories' revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Neuland Laboratories is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Neuland Laboratories' earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Neuland Laboratories going out to 2029, and you can see them free on our platform here..
You can also view our analysis of Neuland Laboratories' balance sheet, and whether we think Neuland Laboratories is carrying too much debt, for free on our 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.