MPS Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analyst might have been a bit too bullish on MPS Limited (NSE:MPSLTD), given that the company fell short of expectations when it released its third-quarter results last week. MPS missed earnings this time around, with ₹1.3b revenue coming in 7.2% below what the analyst had modelled. Statutory earnings per share (EPS) of ₹17.50 also fell short of expectations by 13%. The analyst 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for MPS

Taking into account the latest results, the consensus forecast from MPS' lone analyst is for revenues of ₹5.95b in 2025. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 15% to ₹82.40. In the lead-up to this report, the analyst had been modelling revenues of ₹6.17b and earnings per share (EPS) of ₹82.20 in 2025. So it looks like the analyst has become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of ₹1,660, showing that the analyst doesn't expect weaker revenue expectations next year to have a material impact on MPS' market value.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of MPS'historical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 9.4% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. So although MPS is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on MPS. Long-term earnings power is much more important than next year's profits. We have analyst estimates for MPS going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for MPS that you should be aware of.

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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.