Amagi Media Labs Limited (NSE:AMAGI) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.2%to hit ₹4.8b. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Amagi Media Labs' six analysts are now forecasting revenues of ₹19.5b in 2027. This would be a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 14% to ₹9.18. In the lead-up to this report, the analysts had been modelling revenues of ₹19.2b and earnings per share (EPS) of ₹9.50 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
See our latest analysis for Amagi Media Labs
The consensus price target held steady at ₹675, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Amagi Media Labs, with the most bullish analyst valuing it at ₹715 and the most bearish at ₹620 per share. This is a very narrow spread of estimates, implying either that Amagi Media Labs is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Amagi Media Labs'historical trends, as the 27% annualised revenue growth to the end of 2027 is roughly in line with the 29% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Amagi Media Labs is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amagi Media Labs. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹675, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Amagi Media Labs going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Amagi Media Labs Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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