NIIT Learning Systems Limited Just Missed Earnings - But Analysts Have Updated Their Models

NIIT Learning Systems Limited (NSE:NIITMTS) just released its latest second-quarter report and things are not looking great. NIIT Learning Systems missed analyst forecasts, with revenues of ₹4.0b and statutory earnings per share (EPS) of ₹4.04, falling short by 4.9% and 8.2% respectively. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for NIIT Learning Systems

Following the latest results, NIIT Learning Systems' three analysts are now forecasting revenues of ₹16.7b in 2025. This would be a credible 4.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.0% to ₹17.80. Before this earnings report, the analysts had been forecasting revenues of ₹17.4b and earnings per share (EPS) of ₹19.10 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of ₹525, suggesting the downgrades are not expected to have a long-term impact on NIIT Learning Systems' valuation. 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. There are some variant perceptions on NIIT Learning Systems, with the most bullish analyst valuing it at ₹530 and the most bearish at ₹520 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.3% per annum over the past year. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. So it's clear that despite the acceleration in growth, NIIT Learning Systems is expected to grow meaningfully slower than the industry average.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹525, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on NIIT Learning Systems. Long-term earnings power is much more important than next year's profits. We have forecasts for NIIT Learning Systems going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for NIIT Learning Systems that you need to take into consideration.

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.