Analysts made a financial statement on Endurance Technologies Limited’s second quarter report (NSE: ENDURANCE)


Last week you may have seen it Limited endurance technologies (NSE: ENDURANCE) has published its quarterly result on the market. The first response was not positive, with stocks falling 2.4% to 1,030 over the past week. Endurance Technologies reported revenue of 18 billion yen, roughly in line with analysts’ forecasts, although statutory earnings per share (EPS) of 11.88 yen exceeded expectations at 3.9% of more than what analysts expected. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a significant change in the outlook for the company, or if it is like habit. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.

See our latest review for Endurance Technologies

NSEI: ENDURANCE Earnings and Revenue Growth November 14, 2020

After the latest results, the nine analysts covering Endurance Technologies are now forecasting revenue of € 62.6 billion in 2021. If achieved, that would reflect a solid 12% improvement in sales over the last 12 month. Statutory earnings per share are expected to increase 12% to 29.63. Before this report was written, analysts had modeled revenue of 63.1 billion yen and earnings per share (EPS) of 30.40 yen in 2021. Analysts appear to have turned a little more negative about the company afterwards. the latest results, given the slight drop in earnings per share for next year.

It might come as a surprise to learn that the consensus price target has remained broadly unchanged at 1,142 yen, with analysts clearly hinting that the expected decline in earnings is unlikely to have much of an impact on valuation. The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. The most optimistic Endurance Technologies analyst has a price target of 1,347 yen per share, while the most pessimistic puts it at 843 yen. As you can see, not all analysts agree on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not entirely unpredictable.

Looking at the big picture now, one of the ways to make sense of these forecasts is to see how they stack up against both past performance and industry growth estimates. For example, we have noticed that Endurance Technologies’ growth rate is expected to accelerate significantly, with expected revenue growing 12%, well above its historic decline of 0.2% per year over the past year. for the past three years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to see their revenues grow by 16% per year. While Endurance Technologies’ revenue is expected to improve, it looks like analysts are still bearish on the business, forecasting slower growth than the industry as a whole.

The bottom line

The most important thing to remember is that analysts have lowered their earnings per share estimates, showing that there has been a marked drop in sentiment following these results. Thankfully, analysts also reconfirmed their revenue estimates, suggesting that sales are tracking expectations – although our data suggests Endurance Technologies revenue is expected to outperform the industry as a whole. The consensus price target held steady at 1,142 as the latest estimates were not sufficient to impact their price targets.

That said, the company’s long-term earnings trajectory is much bigger than next year. We have forecasts for Endurance Technologies through 2023, and you can see them for free on our platform here.

Another thing to consider is whether management and directors have bought or sold shares recently. We provide an overview of all open market stock transactions over the past twelve months on our platform, here.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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