Earnings Miss: Go Fashion (India) Limited Missed EPS By 51% And Analysts Are Revising Their Forecasts
Go Fashion (India) Limited (NSE:GOCOLORS) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹2.2b, statutory earnings missed forecasts by an incredible 51%, coming in at just ₹1.70 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the six analysts covering Go Fashion (India) are now predicting revenues of ₹8.73b in 2027. If met, this would reflect a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 27% to ₹9.80. Before this earnings report, the analysts had been forecasting revenues of ₹8.69b and earnings per share (EPS) of ₹12.13 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
Check out our latest analysis for Go Fashion (India)
The consensus price target held steady at ₹322, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Go Fashion (India) analyst has a price target of ₹387 per share, while the most pessimistic values it at ₹270. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Go Fashion (India) shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Go Fashion (India)'s revenue growth is expected to slow, with the forecast 9.7% annualised growth rate until the end of 2027 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that Go Fashion (India) is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Go Fashion (India). On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹322, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Go Fashion (India). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Go Fashion (India) going out to 2029, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Go Fashion (India) , and understanding this should be part of your investment process.
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