Brigade Enterprises Limited Recorded A 20% Miss On Revenue: Analysts Are Revisiting Their Models
It's shaping up to be a tough period for Brigade Enterprises Limited (NSE:BRIGADE), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Brigade Enterprises reported an earnings miss, with ₹12b revenues falling 20% short of analyst models, and statutory earnings per share (EPS) of ₹5.93 also coming in slightly below expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the 14 analysts covering Brigade Enterprises are now predicting revenues of ₹69.9b in 2027. If met, this would reflect a huge 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 33% to ₹29.57. Before this earnings report, the analysts had been forecasting revenues of ₹69.6b and earnings per share (EPS) of ₹30.53 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Check out our latest analysis for Brigade Enterprises
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹775, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Brigade Enterprises, with the most bullish analyst valuing it at ₹899 and the most bearish at ₹560 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Brigade Enterprises' past performance and to peers in the same industry. It's clear from the latest estimates that Brigade Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 71% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 25% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Brigade Enterprises is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹775, 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. At Simply Wall St, we have a full range of analyst estimates for Brigade Enterprises going out to 2029, and you can see them free on our platform here..
Even so, be aware that Brigade Enterprises is showing 1 warning sign in our investment analysis , you should know about...
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