TeamLease Services Limited Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that TeamLease Services Limited (NSE:TEAMLEASE) filed its first-quarter result this time last week. The early response was not positive, with shares down 6.0% to ₹1,235 in the past week. It looks like a credible result overall - although revenues of ₹30b were in line with what the analysts predicted, TeamLease Services surprised by delivering a statutory profit of ₹20.79 per share, a notable 15% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, TeamLease Services' twelve analysts are now forecasting revenues of ₹127.2b in 2027. This would be an okay 6.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹89.87, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹127.2b and earnings per share (EPS) of ₹89.58 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for TeamLease Services

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,757. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on TeamLease Services, with the most bullish analyst valuing it at ₹2,400 and the most bearish at ₹1,380 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that TeamLease Services' revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TeamLease Services.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TeamLease Services' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,757, 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. We have forecasts for TeamLease Services going out to 2029, and you can see them free on our platform here.

You can also see our analysis of TeamLease Services' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.