Updater Services Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Updater Services Limited (NSE:UDS) released its full-year result to the market. The early response was not positive, with shares down 7.7% to ₹299 in the past week. Revenues ₹25b disappointed slightly, at2.1% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹11.30 coming in 11% above what was anticipated. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Updater Services

Following the latest results, Updater Services' three analysts are now forecasting revenues of ₹27.8b in 2025. This would be a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 71% to ₹17.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹29.5b and earnings per share (EPS) of ₹17.80 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹432 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. Currently, the most bullish analyst values Updater Services at ₹465 per share, while the most bearish prices it at ₹406. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Updater Services is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Updater Services' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while Updater Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹432, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Updater Services 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.