Analysts Are Updating Their NIIT Learning Systems Limited (NSE:NIITMTS) Estimates After Its Yearly Results

NIIT Learning Systems Limited (NSE:NIITMTS) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to ₹447 in the week after its latest full-year results. It looks like the results were a bit of a negative overall. While revenues of ₹16b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit ₹15.22 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. 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 NIIT Learning Systems

Following the latest results, NIIT Learning Systems' three analysts are now forecasting revenues of ₹17.6b in 2025. This would be a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 27% to ₹20.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹17.9b and earnings per share (EPS) of ₹19.40 in 2025. So the consensus seems to have become somewhat more optimistic on NIIT Learning Systems' earnings potential following these results.

There's been no major changes to the consensus price target of ₹553, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 NIIT Learning Systems at ₹570 per share, while the most bearish prices it at ₹540. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting NIIT Learning Systems is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NIIT Learning Systems' past performance and to peers in the same industry. We would highlight that NIIT Learning Systems' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 39% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it seems obvious that NIIT Learning Systems is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NIIT Learning Systems following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NIIT Learning Systems' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹553, 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 NIIT Learning Systems going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for NIIT Learning Systems that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.