Cyient Limited Just Missed Earnings - But Analysts Have Updated Their Models
As you might know, Cyient Limited (NSE:CYIENT) recently reported its quarterly numbers. Statutory earnings per share disappointed, coming in -22% short of expectations, at ₹9.37. Fortunately revenue performance was a lot stronger at ₹21b 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Cyient's 15 analysts are now forecasting revenues of ₹85.0b in 2027. This would be a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 65% to ₹56.35. In the lead-up to this report, the analysts had been modelling revenues of ₹83.3b and earnings per share (EPS) of ₹60.63 in 2027. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a solid to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
View our latest analysis for Cyient
The consensus price target was unchanged at ₹983, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Cyient analyst has a price target of ₹1,300 per share, while the most pessimistic values it at ₹740. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cyient's past performance and to peers in the same industry. It's clear from the latest estimates that Cyient's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. 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 5.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cyient is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cyient. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Cyient. Long-term earnings power is much more important than next year's profits. We have forecasts for Cyient going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Cyient .
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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.