Results: One97 Communications Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

One97 Communications Limited (NSE:PAYTM) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of ₹24b, some 2.7% above estimates, and statutory earnings per share (EPS) coming in at ₹3.40, 24% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from One97 Communications' 18 analysts is for revenues of ₹106.3b in 2027. This would reflect a solid 19% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 84% to ₹18.70. Before this earnings report, the analysts had been forecasting revenues of ₹104.5b and earnings per share (EPS) of ₹17.98 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for One97 Communications

The consensus price target rose 7.9% to ₹1,476, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic One97 Communications analyst has a price target of ₹1,750 per share, while the most pessimistic values it at ₹1,050. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting One97 Communications' growth to accelerate, with the forecast 26% annualised growth to the end of 2027 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect One97 Communications to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards One97 Communications following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple One97 Communications analysts - going out to 2029, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for One97 Communications that you need to take into consideration.

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.