Earnings Report: Updater Services Limited Missed Revenue Estimates By 6.2%

The third-quarter results for Updater Services Limited (NSE:UDS) were released last week, making it a good time to revisit its performance. Revenues came in 6.2% below expectations, at ₹6.9b. Statutory earnings per share were relatively better off, with a per-share profit of ₹11.30 being roughly in line with analyst estimates. 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.

Check out our latest analysis for Updater Services

Taking into account the latest results, the most recent consensus for Updater Services from four analysts is for revenues of ₹31.9b in 2026. If met, it would imply a notable 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 33% to ₹21.65. In the lead-up to this report, the analysts had been modelling revenues of ₹31.1b and earnings per share (EPS) of ₹22.85 in 2026. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target was unchanged at ₹472, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. Currently, the most bullish analyst values Updater Services at ₹557 per share, while the most bearish prices it at ₹415. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. It's clear that while Updater Services' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Updater Services. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Updater Services analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Updater Services' 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.