Redington Limited Just Beat Revenue By 17%: Here's What Analysts Think Will Happen Next
Redington Limited (NSE:REDINGTON) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 17% higher than the analysts had forecast, at ₹429b, while EPS of ₹6.92 beat analyst models by 6.5%. 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. 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 consensus forecast from Redington's six analysts is for revenues of ₹1.49t in 2027. This reflects a credible 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to ₹26.57. In the lead-up to this report, the analysts had been modelling revenues of ₹1.49t and earnings per share (EPS) of ₹26.57 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Redington
There were no changes to revenue or earnings estimates or the price target of ₹447, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Redington analyst has a price target of ₹505 per share, while the most pessimistic values it at ₹380. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Redington's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 21% annually. Factoring in the forecast slowdown in growth, it seems obvious that Redington is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Redington's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹447, 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 Redington. 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 Redington going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Redington has 3 warning signs (and 2 which are potentially serious) we think you should know about.
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