Stock Analysis

Cyient Limited (NSE:CYIENT) Just Beat EPS By 8.2%: Here's What Analysts Are Forecasting For This Year

NSEI:CYIENT
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Cyient Limited (NSE:CYIENT) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of ₹18b arriving 8.8% ahead of forecasts. Statutory earnings per share (EPS) were ₹16.14, 8.2% ahead of estimates. 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. 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

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NSEI:CYIENT Earnings and Revenue Growth October 27th 2024

Taking into account the latest results, the most recent consensus for Cyient from 20 analysts is for revenues of ₹74.9b in 2025. If met, it would imply a credible 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 11% to ₹66.08. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹73.7b and earnings per share (EPS) of ₹64.94 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹2,003, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Cyient at ₹2,438 per share, while the most bearish prices it at ₹1,602. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Cyient's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% annually. So it's pretty clear that, while Cyient's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Cyient. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Cyient analysts - 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 2 warning signs for Cyient 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.