Oracle Financial Services Software Limited Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders will be ecstatic, with their stake up 48% over the past week following Oracle Financial Services Software Limited's (NSE:OFSS) latest second-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹14b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.6% to hit ₹48.01 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for Oracle Financial Services Software

After the latest results, the single analyst covering Oracle Financial Services Software are now predicting revenues of ₹64.6b in 2024. If met, this would reflect a reasonable 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.0% to ₹259. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹61.2b and earnings per share (EPS) of ₹229 in 2024. So it seems there's been a definite increase in optimism about Oracle Financial Services Software's future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analyst has increased their price target for Oracle Financial Services Software 32% to ₹6,260on the back of these upgrades.

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 analyst is definitely expecting Oracle Financial Services Software's growth to accelerate, with the forecast 8.4% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 15% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Oracle Financial Services Software is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Oracle Financial Services Software following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Oracle Financial Services Software. 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.

Plus, you should also learn about the 2 warning signs we've spotted with Oracle Financial Services Software .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.