NIIT Learning Systems Limited Just Missed EPS By 9.8%: Here's What Analysts Think Will Happen Next

As you might know, NIIT Learning Systems Limited (NSE:NIITMTS) recently reported its yearly numbers. Revenues of ₹17b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹16.15, missing estimates by 9.8%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, NIIT Learning Systems' three analysts are now forecasting revenues of ₹18.3b in 2026. This would be a modest 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 11% to ₹18.55. Before this earnings report, the analysts had been forecasting revenues of ₹19.3b and earnings per share (EPS) of ₹20.95 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

View our latest analysis for NIIT Learning Systems

The consensus price target fell 18% to ₹458, with the weaker earnings outlook clearly leading valuation estimates. 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 ₹475 per share, while the most pessimistic values it at ₹440. 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.

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. It's pretty clear that there is an expectation that NIIT Learning Systems' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.0% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for NIIT Learning Systems. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of NIIT Learning Systems' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple NIIT Learning Systems analysts - going out to 2027, and you can see them free on our platform here.

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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.