Firstsource Solutions Limited (NSE:FSL) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

The quarterly results for Firstsource Solutions Limited (NSE:FSL) were released last week, making it a good time to revisit its performance. Revenues of ₹22b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹2.40, missing estimates by 2.0%. 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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the latest results, Firstsource Solutions' eight analysts are now forecasting revenues of ₹94.1b in 2026. This would be a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to ₹10.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹93.4b and earnings per share (EPS) of ₹10.97 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Firstsource Solutions

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹391. 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. There are some variant perceptions on Firstsource Solutions, with the most bullish analyst valuing it at ₹427 and the most bearish at ₹330 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Firstsource Solutions is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Firstsource Solutions' past performance and to peers in the same industry. It's clear from the latest estimates that Firstsource Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 10% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Firstsource Solutions is expected to grow at about the same rate as the wider 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, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹391, 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. We have forecasts for Firstsource Solutions going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Firstsource Solutions that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.