Newgen Software Technologies Limited (NSE:NEWGEN) Just Released Its Annual Results And Analysts Are Updating Their Estimates

The investors in Newgen Software Technologies Limited's (NSE:NEWGEN) will be rubbing their hands together with glee today, after the share price leapt 22% to ₹983 in the week following its full-year results. It was a credible result overall, with revenues of ₹12b and statutory earnings per share of ₹17.50 both in line with analyst estimates, showing that Newgen Software Technologies is executing in line with expectations. 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.

Check out our latest analysis for Newgen Software Technologies

After the latest results, the three analysts covering Newgen Software Technologies are now predicting revenues of ₹15.7b in 2025. If met, this would reflect a sizeable 26% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 30% to ₹23.50. In the lead-up to this report, the analysts had been modelling revenues of ₹15.8b and earnings per share (EPS) of ₹21.93 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of ₹1,027, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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 Newgen Software Technologies at ₹1,150 per share, while the most bearish prices it at ₹858. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Newgen Software Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that Newgen Software Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Newgen Software Technologies is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Newgen Software Technologies following these results. 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 ₹1,027, 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. At Simply Wall St, we have a full range of analyst estimates for Newgen Software Technologies going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Newgen Software 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.