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

As you might know, Hexaware Technologies Limited (NSE:HEXT) recently reported its second-quarter numbers. It looks like a pretty bad result, all things considered. Although revenues of ₹38b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 21% to hit ₹5.38 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hexaware Technologies after the latest results.

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After the latest results, the 15 analysts covering Hexaware Technologies are now predicting revenues of ₹154.0b in 2026. If met, this would reflect a modest 6.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.9% to ₹22.91. Before this earnings report, the analysts had been forecasting revenues of ₹153.7b and earnings per share (EPS) of ₹24.65 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Hexaware Technologies

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹573, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hexaware Technologies at ₹710 per share, while the most bearish prices it at ₹440. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Hexaware Technologies'historical trends, as the 14% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.6% annually. So it's pretty clear that Hexaware Technologies is forecast to grow substantially 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 Hexaware Technologies. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹573, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hexaware Technologies analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Hexaware Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.