Cyient DLM Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders of Cyient DLM Limited (NSE:CYIENTDLM) will be pleased this week, given that the stock price is up 13% to ₹665 following its latest first-quarter results. Statutory earnings per share of ₹2.05 unfortunately missed expectations by 15%, although it was encouraging to see revenues of ₹3.7b exceed expectations by 4.6%. The analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Cyient DLM's ten analysts is for revenues of ₹16.4b in 2027. This would reflect a major 21% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 23% to ₹12.72. In the lead-up to this report, the analysts had been modelling revenues of ₹15.9b and earnings per share (EPS) of ₹11.81 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for Cyient DLM

With these upgrades, we're not surprised to see that the analysts have lifted their price target 32% to ₹575per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Cyient DLM at ₹800 per share, while the most bearish prices it at ₹380. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cyient DLM's past performance and to peers in the same industry. The analysts are definitely expecting Cyient DLM's growth to accelerate, with the forecast 29% annualised growth to the end of 2027 ranking favourably alongside historical growth of 11% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cyient DLM to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cyient DLM's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cyient DLM analysts - going out to 2029, and you can see them free on our platform here.

You still need to take note of risks, for example - Cyient DLM has 1 warning sign we think you should be aware of.

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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.