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 quarterly results last week. Results look to have been somewhat negative - revenue fell 4.0% short of analyst estimates at ₹1.8b, and statutory earnings of ₹20.76 per share missed forecasts by 7.3%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for MPS

Taking into account the latest results, the consensus forecast from MPS' single analyst is for revenues of ₹7.31b in 2025. This reflects a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 18% to ₹83.50. Before this earnings report, the analyst had been forecasting revenues of ₹7.55b and earnings per share (EPS) of ₹82.40 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The analyst has also increased their price target 55% to ₹2,570, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on MPS' valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MPS' past performance and to peers in the same industry. The analyst is definitely expecting MPS' growth to accelerate, with the forecast 30% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MPS is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded MPS' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with MPS .

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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.