CMS Info Systems Limited (NSE:CMSINFO) Just Released Its Full-Year Earnings: Here's What Analysts Think

CMS Info Systems Limited (NSE:CMSINFO) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. CMS Info Systems reported in line with analyst predictions, delivering revenues of ₹19b and statutory earnings per share of ₹18.67, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for CMS Info Systems

After the latest results, the five analysts covering CMS Info Systems are now predicting revenues of ₹22.8b in 2024. If met, this would reflect a notable 18% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to ascend 13% to ₹21.80. In the lead-up to this report, the analysts had been modelling revenues of ₹22.9b and earnings per share (EPS) of ₹22.27 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹414, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 ₹442 and the most bearish at ₹390 per share. This is a very narrow spread of estimates, implying either that CMS Info Systems is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting CMS Info Systems' growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past three 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at ₹414, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CMS Info Systems going out to 2025, and you can see them free on our platform here..

You can also see our analysis of CMS Info Systems' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.