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

It's been a good week for Firstsource Solutions Limited (NSE:FSL) shareholders, because the company has just released its latest yearly results, and the shares gained 6.5% to ₹226. Results were roughly in line with estimates, with revenues of ₹63b and statutory earnings per share of ₹7.34. 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 Firstsource Solutions after the latest results.

View our latest analysis for Firstsource Solutions

Taking into account the latest results, the consensus forecast from Firstsource Solutions' nine analysts is for revenues of ₹72.0b in 2025. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 20% to ₹8.96. In the lead-up to this report, the analysts had been modelling revenues of ₹71.9b and earnings per share (EPS) of ₹8.94 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of ₹238, suggesting that the company has met expectations in its recent result. 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. The most optimistic Firstsource Solutions analyst has a price target of ₹260 per share, while the most pessimistic values it at ₹220. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Firstsource Solutions' growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum 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 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate 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 Firstsource Solutions going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Firstsource Solutions .

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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.

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