Earnings Miss: Clean Science and Technology Limited Missed EPS By 13% And Analysts Are Revising Their Forecasts
Clean Science and Technology Limited (NSE:CLEAN) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to ₹716 in the week after its latest quarterly results. It was not a great result overall. Although revenues beat expectations, hitting ₹3.0b, statutory earnings missed analyst forecasts by 13%, coming in at just ₹5.24 per share. 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.
After the latest results, the twelve analysts covering Clean Science and Technology are now predicting revenues of ₹11.8b in 2027. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.6% to ₹23.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹11.6b and earnings per share (EPS) of ₹25.32 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for Clean Science and Technology
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹961, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Clean Science and Technology, with the most bullish analyst valuing it at ₹1,150 and the most bearish at ₹770 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Clean Science and Technology's growth to accelerate, with the forecast 27% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Clean Science and Technology to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Clean Science and Technology. 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 ₹961, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Clean Science and Technology analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Clean Science and Technology has 1 warning sign we think you should be aware of.
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