Cyient Limited Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Cyient Limited (NSE:CYIENT) filed its quarterly result this time last week. The early response was not positive, with shares down 10.0% to ₹2,020 in the past week. Statutory earnings per share fell badly short of expectations, coming in at ₹13.29, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹18b. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Cyient

Taking into account the latest results, the current consensus from Cyient's 17 analysts is for revenues of ₹81.8b in 2025. This would reflect a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 37% to ₹81.00. Before this earnings report, the analysts had been forecasting revenues of ₹81.8b and earnings per share (EPS) of ₹81.75 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹2,260, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Cyient, with the most bullish analyst valuing it at ₹2,701 and the most bearish at ₹1,521 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cyient shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Cyient's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cyient to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cyient going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Cyient .

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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.