Earnings Miss: Interarch Building Solutions Limited Missed EPS By 15% And Analysts Are Revising Their Forecasts
It's been a good week for Interarch Building Solutions Limited (NSE:INTERARCH) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.5% to ₹1,541. It was not a great result overall. While revenues of ₹5.1b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit ₹18.18 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Interarch Building Solutions' three analysts is for revenues of ₹22.0b in 2027. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.8% to ₹83.80. In the lead-up to this report, the analysts had been modelling revenues of ₹22.0b and earnings per share (EPS) of ₹88.75 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.
View our latest analysis for Interarch Building Solutions
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹2,443, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Interarch Building Solutions analyst has a price target of ₹2,889 per share, while the most pessimistic values it at ₹2,140. 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 Interarch Building Solutions shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Interarch Building Solutions' growth to accelerate, with the forecast 23% annualised growth to the end of 2027 ranking favourably alongside historical growth of 17% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Interarch Building Solutions 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 Interarch Building Solutions. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹2,443, 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 Interarch Building Solutions going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Interarch Building Solutions has 2 warning signs (and 1 which is concerning) we think you should know about.
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