Glenmark Life Sciences Limited reported a 7.3% shortfall: analysts review their models

Glenmark Life Sciences Limited (NSE:GLS) Shareholders are likely a bit disappointed, as its shares fell 3.2% to ₹449 in the week after its latest quarterly results. Results look mixed – while revenue was slightly below analysts’ estimates at ₹5.0 billion, statutory earnings were in line with expectations at ₹35.63 per share. It’s an important time for investors, as they can follow a company’s performance in its report, watch what experts are predicting for next year, and see if there’s been a change in company expectations. ‘company. With that in mind, we’ve rounded up the latest statutory forecasts to see what analysts expect for next year.

See our latest analysis for Glenmark Life Sciences

NSEI: GLS Earnings and Revenue Growth August 7, 2022

Following the latest results, the four analysts at Glenmark Life Sciences now forecast revenue of ₹22.8 billion in 2023. This would represent a solid 8.7% improvement in sales over the past 12 months. Earnings per share are expected to increase by 8.6% to ₹37.81. Prior to this earnings report, analysts were forecasting revenue of ₹24.1 billion and earnings per share (EPS) of ₹39.08 in 2023. It’s pretty clear that pessimism kicked in after the latest earnings , leading to a weaker earnings outlook and a minor downward revision to earnings per share estimates.

The consensus price target fell 5.4% to ₹625, with the weaker earnings outlook clearly leading the valuation estimates. It might also be instructive to look at the range of analysts’ estimates, to gauge how different the outlier opinions are from the mean. There are different perceptions on Glenmark Life Sciences, with the most bullish analyst pricing it at ₹682 and the most bearish at ₹613 per share. Even so, with a relatively close group of estimates, it appears that analysts are quite confident in their valuations, suggesting that Glenmark Life Sciences is an easy company to predict or that analysts are all using similar assumptions.

Of course, another way to look at these predictions is to put them in context with the industry itself. Analysts certainly expect Glenmark Life Sciences’ growth to accelerate, with projected annualized growth of 12% through the end of 2023 ranking favorably alongside historic growth of 4.0% per year over the past year. the last year. Compare that with other companies in the same industry, which are expected to increase revenue by 11% per year. Factoring in the expected revenue acceleration, it’s pretty clear that Glenmark Life Sciences should grow at about the same rate as the industry as a whole.

The essential

The most important thing to remember is that analysts have lowered their earnings per share estimates, which shows that there has been a clear drop in sentiment following these results. Unfortunately, they also lowered their sales forecast, but the business is still expected to grow at about the same rate as the industry itself. Additionally, analysts have also cut their price targets, suggesting the latest news has led to greater pessimism about the company’s intrinsic value.

Continuing this thinking, we believe that the company’s long-term outlook is much more relevant than next year’s results. We have estimates – from several Glenmark Life Sciences analysts – going out to 2025, and you can view them for free on our platform here.

However, you should always think about the risks. Concrete example, we spotted 1 warning sign for Glenmark Life Sciences you should be aware.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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