It's been a good week for Smartworks Coworking Spaces Limited (NSE:SMARTWORKS) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.3% to ₹484. It was a workmanlike result, with revenues of ₹5.9b coming in 4.3% ahead of expectations, and statutory earnings per share of ₹0.95, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the eight analysts covering Smartworks Coworking Spaces are now predicting revenues of ₹23.2b in 2027. If met, this would reflect a notable 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 26% to ₹6.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹23.3b and earnings per share (EPS) of ₹5.80 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Smartworks Coworking Spaces
There's been no major changes to the consensus price target of ₹643, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Smartworks Coworking Spaces, with the most bullish analyst valuing it at ₹725 and the most bearish at ₹534 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Smartworks Coworking Spaces' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 41% over the past year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 25% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Smartworks Coworking Spaces.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Smartworks Coworking Spaces following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Smartworks Coworking Spaces' revenue is expected to perform worse 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.
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 Smartworks Coworking Spaces analysts - going out to 2029, and you can see them free on our platform here.
You can also see whether Smartworks Coworking Spaces is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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