Zaggle Prepaid Ocean Services Limited Just Missed Earnings - But Analysts Have Updated Their Models
It's shaping up to be a tough period for Zaggle Prepaid Ocean Services Limited (NSE:ZAGGLE), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹4.2b, statutory earnings missed forecasts by an incredible 43%, coming in at just ₹1.30 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the twin analysts covering Zaggle Prepaid Ocean Services are now predicting revenues of ₹24.4b in 2027. If met, this would reflect a major 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.9% to ₹10.20. In the lead-up to this report, the analysts had been modelling revenues of ₹26.1b and earnings per share (EPS) of ₹13.70 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
See our latest analysis for Zaggle Prepaid Ocean Services
It'll come as no surprise then, to learn that the analysts have cut their price target 13% to ₹365.
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 Zaggle Prepaid Ocean Services' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 31% growth on an annualised basis. This is compared to a historical growth rate of 44% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. So it's pretty clear that, while Zaggle Prepaid Ocean Services' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zaggle Prepaid Ocean Services. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zaggle Prepaid Ocean Services' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.