CMS Info Systems Limited Just Missed Earnings - But Analysts Have Updated Their Models

Investors in CMS Info Systems Limited (NSE:CMSINFO) had a good week, as its shares rose 2.6% to close at ₹390 following the release of its third-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹5.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.6% to hit ₹5.37 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for CMS Info Systems

After the latest results, the eight analysts covering CMS Info Systems are now predicting revenues of ₹25.7b in 2025. If met, this would reflect a substantial 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 22% to ₹26.21. Before this earnings report, the analysts had been forecasting revenues of ₹25.8b and earnings per share (EPS) of ₹26.60 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹469, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on CMS Info Systems, with the most bullish analyst valuing it at ₹540 and the most bearish at ₹449 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CMS Info Systems is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that CMS Info Systems' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CMS Info Systems is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CMS Info Systems analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for CMS Info Systems 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.