Tata Elxsi Limited Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for Tata Elxsi Limited (NSE:TATAELXSI) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.5% to ₹6,664. It looks like a credible result overall - although revenues of ₹8.2b were in line with what the analysts predicted, Tata Elxsi surprised by delivering a statutory profit of ₹31.26 per share, a notable 12% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Tata Elxsi

Taking into account the latest results, the consensus forecast from Tata Elxsi's nine analysts is for revenues of ₹36.8b in 2024, which would reflect a substantial 23% improvement in sales compared to the last 12 months. Per-share earnings are expected to swell 15% to ₹132. In the lead-up to this report, the analysts had been modelling revenues of ₹36.4b and earnings per share (EPS) of ₹129 in 2024. 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 ₹6,500. 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 Tata Elxsi analyst has a price target of ₹9,203 per share, while the most pessimistic values it at ₹4,001. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Tata Elxsi is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹6,500, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tata Elxsi going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Tata Elxsi .

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.