Investors in Zee Entertainment Enterprises Limited (NSE:ZEEL) had a good week, as its shares rose 3.1% to close at ₹97.52 following the release of its quarterly results. Statutory earnings per share fell badly short of expectations, coming in at ₹0.79, some 39% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹19b. 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.
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Taking into account the latest results, the consensus forecast from Zee Entertainment Enterprises’ twelve analysts is for revenues of ₹84.4b in 2027. This reflects a modest 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 201% to ₹6.44. Before this earnings report, the analysts had been forecasting revenues of ₹84.4b and earnings per share (EPS) of ₹6.56 in 2027. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
Check out our latest analysis for Zee Entertainment Enterprises
The analysts reconfirmed their price target of ₹103, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on Zee Entertainment Enterprises, with the most bullish analyst valuing it at ₹125 and the most bearish at ₹80.00 per share. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.
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. One thing stands out from these estimates, which is that Zee Entertainment Enterprises is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.1% annualised growth until the end of 2027. If achieved, this would be a much better result than the 0.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.8% per year. Although Zee Entertainment Enterprises’ revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Zee Entertainment Enterprises’ 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.
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 estimates – from multiple Zee Entertainment Enterprises analysts – going out to 2029, and you can see them free on our platform here.
We don’t want to rain on the parade too much, but we did also find 3 warning signs for Zee Entertainment Enterprises that you need to be mindful of.
Valuation is complex, but we’re here to simplify it.
Discover if Zee Entertainment Enterprises might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Have feedback on this article? Concerned about the content?Get in touchwith us directly.Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About NSEI:ZEEL
Zee Entertainment Enterprises
Engages in broadcasting satellite television channels and digital media in India and internationally.
Excellent balance sheet average dividend payer.
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