It's been a good week for LTM Limited (NSE:LTM) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.1% to ₹4,265. Revenues of ₹118b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹47.11, missing estimates by 6.3%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LTM after the latest results.
Taking into account the latest results, the most recent consensus for LTM from 37 analysts is for revenues of ₹482.0b in 2027. If met, it would imply an okay 6.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 15% to ₹202. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹483.1b and earnings per share (EPS) of ₹206 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for LTM
There were no changes to revenue or earnings estimates or the price target of ₹4,495, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values LTM at ₹6,108 per share, while the most bearish prices it at ₹3,480. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. It's pretty clear that there is an expectation that LTM's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% per year. So it's pretty clear that, while LTM's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. 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 ₹4,495, 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. We have estimates - from multiple LTM analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that LTM is showing 1 warning sign in our investment analysis , you should know about...
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