Here's What Analysts Are Forecasting For NIIT Learning Systems Limited (NSE:NIITMTS) After Its First-Quarter Results

Last week saw the newest quarterly earnings release from NIIT Learning Systems Limited (NSE:NIITMTS), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹4.1b were in line with what the analysts predicted, NIIT Learning Systems surprised by delivering a statutory profit of ₹4.26 per share, modestly greater than expected. 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.

See our latest analysis for NIIT Learning Systems

Following the latest results, NIIT Learning Systems' three analysts are now forecasting revenues of ₹17.5b in 2025. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to ₹19.10. In the lead-up to this report, the analysts had been modelling revenues of ₹17.5b and earnings per share (EPS) of ₹18.85 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹548. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic NIIT Learning Systems analyst has a price target of ₹565 per share, while the most pessimistic values it at ₹530. This is a very narrow spread of estimates, implying either that NIIT Learning Systems is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 analysts are definitely expecting NIIT Learning Systems' growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that NIIT Learning Systems is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹548, 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. We have estimates - from multiple NIIT Learning Systems analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - NIIT Learning Systems has 2 warning signs we think 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.

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