Earnings Update: Computer Age Management Services Limited (NSE:CAMS) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Computer Age Management Services Limited (NSE:CAMS) just released its quarterly report and things are looking bullish. The company beat expectations with revenues of ₹3.7b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were ₹24.76, 3.0% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Computer Age Management Services after the latest results.

Check out our latest analysis for Computer Age Management Services

Following the latest results, Computer Age Management Services' 13 analysts are now forecasting revenues of ₹14.5b in 2025. This would be a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.9% to ₹94.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹14.2b and earnings per share (EPS) of ₹94.33 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of ₹4,549, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Computer Age Management Services at ₹5,300 per share, while the most bearish prices it at ₹3,080. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Computer Age Management Services shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Computer Age Management Services' growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Computer Age Management Services is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

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 Computer Age Management Services analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Computer Age Management Services that you need to take into consideration.

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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.