TBO Tek Limited Just Missed EPS By 21%: Here's What Analysts Think Will Happen Next
The analysts might have been a bit too bullish on TBO Tek Limited (NSE:TBOTEK), given that the company fell short of expectations when it released its second-quarter results last week. Results showed a clear earnings miss, with ₹8.7b revenue coming in 8.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹7.05 missed the mark badly, arriving some 21% below what was expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from TBO Tek's twelve analysts is for revenues of ₹36.3b in 2027. This would reflect an okay 6.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 27% to ₹32.43. In the lead-up to this report, the analysts had been modelling revenues of ₹37.8b and earnings per share (EPS) of ₹35.53 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
View our latest analysis for TBO Tek
Despite the cuts to forecast earnings, there was no real change to the ₹1,966 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 TBO Tek analyst has a price target of ₹2,200 per share, while the most pessimistic values it at ₹1,720. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that TBO Tek's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2027 being well below the historical 35% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. Factoring in the forecast slowdown in growth, it seems obvious that TBO Tek 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 TBO Tek. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 TBO Tek going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for TBO Tek you should be aware of.
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