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

It's shaping up to be a tough period for Coforge Limited (NSE:COFORGE), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹62b, statutory earnings missed forecasts by 10%, coming in at just ₹13.19 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Coforge from 34 analysts is for revenues of ₹247.3b in 2027. If met, it would imply a sizeable 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 31% to ₹58.41. Before this earnings report, the analysts had been forecasting revenues of ₹249.0b and earnings per share (EPS) of ₹58.25 in 2027. 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.

See our latest analysis for Coforge

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.6% to ₹2,151. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Coforge, with the most bullish analyst valuing it at ₹2,700 and the most bearish at ₹1,267 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Coforge's growth to accelerate, with the forecast 47% annualised growth to the end of 2027 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Coforge 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. 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.

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 Coforge analysts - going out to 2029, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Coforge (1 shouldn't be ignored!) that you need to be mindful of.

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