Neogen Chemicals Limited Earnings Missed Analyst Estimates: Here’s What Analysts Are Forecasting Now

As you might know, Neogen Chemicals Limited (NSE:NEOGEN) recently reported its interim numbers. Statutory earnings per share disappointed, coming in -22% short of expectations, at ₹9.21. Fortunately revenue performance was a lot stronger at ₹3.0b arriving 12% ahead of predictions. 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.

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Taking into account the latest results, the consensus forecast from Neogen Chemicals’ eleven analysts is for revenues of ₹13.5b in 2027. This reflects a major 32% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 86% to ₹25.04. Before this earnings report, the analysts had been forecasting revenues of ₹12.9b and earnings per share (EPS) of ₹19.27 in 2027. So it seems there’s been a definite increase in optimism about Neogen Chemicals’ future following the latest results, with a great increase in the earnings per share forecasts in particular.

Check out our latest analysis for Neogen Chemicals

With these upgrades, we’re not surprised to see that the analysts have lifted their price target 6.4% to ₹2,435per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Neogen Chemicals at ₹3,050 per share, while the most bearish prices it at ₹2,090. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Neogen Chemicals’ growth to accelerate, with the forecast 75% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Neogen Chemicals to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Neogen Chemicals’ earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Neogen Chemicals going out to 2029, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Neogen Chemicals that we have uncovered.

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