Cardiff Oncology shares plunge after Q2 earnings miss
On Thursday, CLSA analyst Vatsal Dujari updated the financial outlook for Westlife Foodworld Ltd (WLDL:IN), increasing the price target to INR530 from INR506 while maintaining an Underperform rating on the company’s shares. This adjustment comes despite Westlife Foodworld’s fourth-quarter fiscal year 2025 sales growth of 7.3% year-over-year, which fell short of both CLSA’s and the consensus estimates by 6% and 3%, respectively.
The company’s same-store sales (SSS) saw a marginal increase of 0.7%, which adjusts to a 1.7% rise when factoring in the leap year. This is set against a weak comparison base, as the SSS had declined by 5% in the fourth quarter of fiscal year 2024. The gross profit for the quarter came in 7% and 3.5% below CLSA’s estimate and the consensus, respectively, with margins remaining flat compared to the previous year.
The earnings before interest, taxes, depreciation, and amortization (Ebitda) aligned with consensus expectations, while earnings before interest and taxes (Ebit) were 5% lower than anticipated. This was attributed to depreciation costs that exceeded forecasts. Westlife Foodworld has provided guidance for its operating margin, aiming to reach 18-20% by the year 2027.
In light of these developments, CLSA has revised its fiscal year 2026 to 2027 estimates to account for higher operating Ebitda margins. This revision underpins the decision to increase the target price for Westlife Foodworld’s stock. Despite the raised target, the firm’s Underperform rating persists, indicating that analysts at CLSA remain cautious about the company’s stock performance in the near term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.