Nucleus Software Exports Limited Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next

Nucleus Software Exports Limited (NSE:NUCLEUS) just released its latest second-quarter report and things are not looking great. Results showed a clear earnings miss, with ₹2.0b revenue coming in 4.8% lower than what the analystexpected. Statutory earnings per share (EPS) of ₹12.35 missed the mark badly, arriving some 23% 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Nucleus Software Exports

Following the latest results, Nucleus Software Exports' lone analyst are now forecasting revenues of ₹8.46b in 2025. This would be an okay 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.5% to ₹61.60. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹8.68b and earnings per share (EPS) of ₹84.60 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analyst has cut their price target 14% to ₹1,420.

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 6.1% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Nucleus Software Exports' future valuation.

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 least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Even so, be aware that Nucleus Software Exports is showing 1 warning sign in our investment analysis , 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.