Earnings Miss: Krsnaa Diagnostics Limited Missed EPS By 18% And Analysts Are Revising Their Forecasts
Krsnaa Diagnostics Limited (NSE:KRSNAA) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share of ₹5.04 unfortunately missed expectations by 18%, although it was encouraging to see revenues of ₹2.4b exceed expectations by 5.6%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Krsnaa Diagnostics' four analysts is for revenues of ₹9.80b in 2027. This would reflect a decent 16% increase on its revenue over the past 12 months. Statutory earnings per share are expected to fall 12% to ₹26.30 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹9.94b and earnings per share (EPS) of ₹40.87 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
View our latest analysis for Krsnaa Diagnostics
The average price target fell 6.7% to ₹850, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Krsnaa Diagnostics at ₹994 per share, while the most bearish prices it at ₹682. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Krsnaa Diagnostics' past performance and to peers in the same industry. It's clear from the latest estimates that Krsnaa Diagnostics' rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Krsnaa Diagnostics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Krsnaa Diagnostics. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Krsnaa Diagnostics' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Krsnaa Diagnostics analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Krsnaa Diagnostics has 1 warning sign we think you should be aware of.
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