Stock Analysis

Results: Oracle Financial Services Software Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Published
NSEI:OFSS

As you might know, Oracle Financial Services Software Limited (NSE:OFSS) just kicked off its latest first-quarter results with some very strong numbers. The company beat expectations with revenues of ₹17b arriving 4.6% ahead of forecasts. Statutory earnings per share (EPS) were ₹70.69, 7.6% ahead of estimates. 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

NSEI:OFSS Earnings and Revenue Growth July 27th 2024

Following the latest results, Oracle Financial Services Software's sole analyst are now forecasting revenues of ₹72.0b in 2025. This would be a meaningful 8.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.4% to ₹289. In the lead-up to this report, the analyst had been modelling revenues of ₹70.6b and earnings per share (EPS) of ₹283 in 2025. So the consensus seems to have become somewhat more optimistic on Oracle Financial Services Software's earnings potential following these results.

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 31% to ₹10,500.

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 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% 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. So it's clear that despite the acceleration in growth, Oracle Financial Services Software is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Oracle Financial Services Software's earnings potential next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Oracle Financial Services Software's revenue is expected to 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Oracle Financial Services Software that you should be aware of.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

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.