Results: Persistent Systems Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Persistent Systems Limited (NSE:PERSISTENT) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.8% to ₹5,691. The result was positive overall - although revenues of ₹29b were in line with what the analysts predicted, Persistent Systems surprised by delivering a statutory profit of ₹20.98 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Persistent Systems

Following the latest results, Persistent Systems' 34 analysts are now forecasting revenues of ₹117.1b in 2025. This would be a notable 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.0% to ₹87.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹116.0b and earnings per share (EPS) of ₹87.06 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹5,253. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Persistent Systems analyst has a price target of ₹6,750 per share, while the most pessimistic values it at ₹3,090. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Persistent Systems' revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 26% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% per year. Even after the forecast slowdown in growth, it seems obvious that Persistent Systems is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹5,253, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Persistent Systems going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Persistent Systems Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.