Stock Analysis

C. E. Info Systems Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

NSEI:MAPMYINDIA
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Last week saw the newest third-quarter earnings release from C. E. Info Systems Limited (NSE:MAPMYINDIA), an important milestone in the company's journey to build a stronger business. Revenues were ₹677m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹5.41 were also better than expected, beating analyst predictions by 13%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for C. E. Info Systems

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NSEI:MAPMYINDIA Earnings and Revenue Growth February 2nd 2023

Following the latest results, C. E. Info Systems' three analysts are now forecasting revenues of ₹3.93b in 2024. This would be a sizeable 48% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 54% to ₹29.03. In the lead-up to this report, the analysts had been modelling revenues of ₹4.00b and earnings per share (EPS) of ₹30.13 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,558, 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 C. E. Info Systems at ₹1,700 per share, while the most bearish prices it at ₹1,350. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting C. E. Info Systems is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting C. E. Info Systems' growth to accelerate, with the forecast 37% annualised growth to the end of 2024 ranking favourably alongside historical growth of 21% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect C. E. Info Systems to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for C. E. Info Systems going out to 2025, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for C. E. Info Systems that you need to take into consideration.

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Find out whether C. E. Info Systems is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.