Nucleus Software Exports Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Nucleus Software Exports Limited (NSE:NUCLEUS), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with ₹2.0b revenue coming in 9.5% lower than what the analystexpected. Statutory earnings per share (EPS) of ₹11.28 missed the mark badly, arriving some 42% below what was expected. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Nucleus Software Exports after the latest results.

View our latest analysis for Nucleus Software Exports

Taking into account the latest results, the current consensus from Nucleus Software Exports' sole analyst is for revenues of ₹8.68b in 2025. This would reflect an okay 6.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.7% to ₹68.30. Before this earnings report, the analyst had been forecasting revenues of ₹9.17b and earnings per share (EPS) of ₹84.60 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 7.2% to ₹1,540.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Nucleus Software Exports' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nucleus Software Exports is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nucleus Software Exports. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Nucleus Software Exports. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nucleus Software Exports you should know about.

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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.

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