As you may know, Vodafone Idea Limited (NSE: IDEA) recently released its quarterly figures. Income was as expected at 108 billion yen, while statutory losses climbed to 2.51 yen per share. 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. Readers will be happy to know that we have aggregated the latest statutory forecast to see if analysts have changed their minds on Vodafone Idea after the latest results.
See our latest review for Vodafone Idea
Following last week’s earnings report, the 19 Vodafone Idea analysts forecast 2021 revenue at 438.8 billion yen, roughly in line with the past 12 months. Losses are expected to drop significantly, falling 23% to ₹ 13.64. Prior to this earnings announcement, analysts had modeled earnings of 448.1 billion yen and losses of 11.23 yen per share in 2021. So it’s pretty clear that analysts have mixed opinions on Vodafone Idea after this bet. up to date ; earnings have been lowered and losses per share are expected to increase.
There have been no major changes from the consensus price target of 7.20 yen, indicating that the company is performing roughly as expected, despite lower earnings per share expectations. . It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. Currently, the most bullish analyst values Vodafone Idea at 16.00 per share, while the most bearish the price at 1.00. We would probably place less value on analysts’ forecasts in this situation, as such a wide range of estimates could imply that the future of this company is difficult to assess with precision. As a result, it may not be a good idea to make decisions based on the consensus price target, which is after all only an average of this wide range of estimates.
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. These estimates imply that sales are expected to slow, with expected revenue decline of 0.8%, a significant reduction from annual growth of 5.4% over the past five years. Compare that with our data, which suggests other companies in the same industry are expected to see their revenues increase 3.2% overall next year. It’s pretty clear that Vodafone Idea’s revenue is expected to be significantly lower than the industry at large.
The bottom line
The most important thing to remember is that analysts have increased their estimates of loss per share for the next year. Unfortunately, they also lowered their revenue estimates, and our data indicates that revenue should be worse than the industry as a whole. Even so, earnings per share are more important to the intrinsic value of the company. The consensus price target remained at 7.20 yen, with the latest estimates not being sufficient to impact their price targets.
Continuing on from this reflection, we believe that the company’s long-term outlook is much more relevant than next year’s results. We have estimates – from several Vodafone Idea analysts – up to 2025, and you can see them for free on our platform here.
It is also worth noting that we have found 2 warning signs for Vodafone Idea that you need to take into consideration.
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