The eClerx Services Limited (NSE:ECLERX) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

eClerx Services Limited (NSE:ECLERX) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of ₹8.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.6% to hit ₹28.56 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on eClerx Services after the latest results.

See our latest analysis for eClerx Services

Taking into account the latest results, the most recent consensus for eClerx Services from ten analysts is for revenues of ₹38.9b in 2026. If met, it would imply a sizeable 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 17% to ₹131. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹37.8b and earnings per share (EPS) of ₹132 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹3,416, implying that the uplift in revenue is not expected to greatly contribute to eClerx Services's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values eClerx Services at ₹3,727 per share, while the most bearish prices it at ₹2,150. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the eClerx Services' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of eClerx Services'historical trends, as the 16% annualised revenue growth to the end of 2026 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although eClerx Services is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 forecasts for eClerx Services going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.