As you might know, Aequs Limited (NSE:AEQUS) last week released its latest quarterly, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at ₹4.1b, but statutory earnings fell catastrophically short, with a loss of ₹0.80 some 60% larger than what the analysts had predicted. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Aequs' five analysts is for revenues of ₹18.1b in 2027. This reflects a huge 21% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 50% to ₹1.50. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹18.7b and losses of ₹1.10 per share in 2027. So it's pretty clear the analysts have mixed opinions on Aequs after this update; revenues were downgraded and per-share losses expected to increase.
See our latest analysis for Aequs
There was no major change to the consensus price target of ₹290, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Aequs analyst has a price target of ₹444 per share, while the most pessimistic values it at ₹235. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aequs' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Aequs'historical trends, as the 45% annualised revenue growth to the end of 2027 is roughly in line with the 49% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So although Aequs is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Aequs. They also downgraded Aequs' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Aequs. 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 Aequs going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Aequs has 1 warning sign we think you should be aware of.
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