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

Investors in Coforge Limited (NSE:COFORGE) had a good week, as its shares rose 6.1% to close at ₹7,699 following the release of its quarterly results. Coforge beat revenue forecasts by a solid 11% to hit ₹31b. Statutory earnings per share fell 17% short of expectations, at ₹30.14. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Coforge

Following the latest results, Coforge's 29 analysts are now forecasting revenues of ₹117.3b in 2025. This would be a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to ₹147. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹110.2b and earnings per share (EPS) of ₹154 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

Curiously, the consensus price target rose 10% to ₹7,462. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Coforge, with the most bullish analyst valuing it at ₹9,600 and the most bearish at ₹4,520 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Coforge's past performance and to peers in the same industry. It's clear from the latest estimates that Coforge's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 20% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Coforge is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Coforge. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Coforge going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Coforge 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.