Here's What Analysts Are Forecasting For Updater Services Limited (NSE:UDS) After Its First-Quarter Results

Last week, you might have seen that Updater Services Limited (NSE:UDS) released its first-quarter result to the market. The early response was not positive, with shares down 9.7% to ₹262 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹7.0b, statutory earnings were in line with expectations, at ₹17.70 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the three analysts covering Updater Services are now predicting revenues of ₹30.4b in 2026. If met, this would reflect a meaningful 9.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.3% to ₹19.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹31.4b and earnings per share (EPS) of ₹21.57 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Check out our latest analysis for Updater Services

Despite the cuts to forecast earnings, there was no real change to the ₹435 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Updater Services at ₹571 per share, while the most bearish prices it at ₹365. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Updater Services' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Updater Services'historical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 10% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Updater 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Updater Services. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹435, 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 Updater Services going out to 2028, 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.