Results: Leela Palaces Hotels & Resorts Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
Leela Palaces Hotels & Resorts Limited (NSE:THELEELA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of ₹4.1b, some 8.3% above estimates, and statutory earnings per share (EPS) coming in at ₹2.83, 35% ahead of expectations. 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.
Taking into account the latest results, the consensus forecast from Leela Palaces Hotels & Resorts' 18 analysts is for revenues of ₹18.8b in 2027. This reflects a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 14% to ₹15.79. Before this earnings report, the analysts had been forecasting revenues of ₹18.1b and earnings per share (EPS) of ₹15.08 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for Leela Palaces Hotels & Resorts
It will come as no surprise to learn that the analysts have increased their price target for Leela Palaces Hotels & Resorts 10.0% to ₹690on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Leela Palaces Hotels & Resorts, with the most bullish analyst valuing it at ₹753 and the most bearish at ₹610 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Leela Palaces Hotels & Resorts'historical trends, as the 22% annualised revenue growth to the end of 2027 is roughly in line with the 22% annual growth over the past year. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. So although Leela Palaces Hotels & Resorts is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Leela Palaces Hotels & Resorts following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Leela Palaces Hotels & Resorts will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Leela Palaces Hotels & Resorts analysts - going out to 2029, and you can see them free on our platform here.
You can also view our analysis of Leela Palaces Hotels & Resorts' balance sheet, and whether we think Leela Palaces Hotels & Resorts 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.