Oracle Financial Services Software Limited (NSE:OFSS) Just Reported And Analysts Have Been Lifting Their Price Targets

The analyst might have been a bit too bullish on Oracle Financial Services Software Limited (NSE:OFSS), given that the company fell short of expectations when it released its quarterly results last week. Results look to have been somewhat negative - revenue fell 3.1% short of analyst estimates at ₹17b, and statutory earnings of ₹66.18 per share missed forecasts by 2.4%. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Oracle Financial Services Software

Taking into account the latest results, the current consensus from Oracle Financial Services Software's sole analyst is for revenues of ₹70.6b in 2025. This would reflect a modest 2.6% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹285, roughly flat on the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹72.0b and earnings per share (EPS) of ₹289 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 8.8% to ₹11,420despite there being no meaningful change to earnings estimates. It could be that the analystare reflecting the predictability of Oracle Financial Services Software's earnings by assigning a price premium.

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. We would highlight that Oracle Financial Services Software's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2025 being well below the historical 6.7% p.a. growth over the last 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 Oracle Financial Services Software is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Oracle Financial Services Software going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Oracle Financial Services Software that we have uncovered.

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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.