Sun TV Network Limited Just Beat EPS By 31%: Here's What Analysts Think Will Happen Next
Sun TV Network Limited (NSE:SUNTV) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of ₹15b, some 7.2% above estimates, and statutory earnings per share (EPS) coming in at ₹15.71, 31% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, Sun TV Network's ten analysts are forecasting 2027 revenues to be ₹45.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 8.2% to ₹41.98. In the lead-up to this report, the analysts had been modelling revenues of ₹45.3b and earnings per share (EPS) of ₹42.20 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 Sun TV Network
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹634. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sun TV Network analyst has a price target of ₹750 per share, while the most pessimistic values it at ₹530. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Sun TV Network's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 4.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sun TV Network.
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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sun TV Network's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹634, 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 Sun TV Network going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Sun TV Network that you need to take into consideration.
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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.