NIIT Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

NIIT Limited (NSE:NIITLTD) shareholders are probably feeling a little disappointed, since its shares fell 5.3% to ₹119 in the week after its latest third-quarter results. The results were mixed; although revenues of ₹816m fell 11% short of analyst estimates, statutory earnings per share (EPS) of ₹1.05 beat expectations by 17%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for NIIT

Taking into account the latest results, the current consensus from NIIT's sole analyst is for revenues of ₹4.07b in 2025. This would reflect a major 41% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 284% to ₹5.10. In the lead-up to this report, the analyst had been modelling revenues of ₹4.21b and earnings per share (EPS) of ₹3.60 in 2025. Although the analyst has lowered their revenue forecasts, they've also made a massive increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

The average price target increased 33% to ₹120, with the analyst signalling that the improved earnings outlook is more important to the company's valuation than its revenue.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that NIIT is forecast to grow faster in the future than it has in the past, with revenues expected to display 31% annualised growth until the end of 2025. If achieved, this would be a much better result than the 6.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like NIIT is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NIIT following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with NIIT .

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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.