ExlService Holdings, Inc. Just Beat EPS By 7.4%: Here's What Analysts Think Will Happen Next

ExlService Holdings, Inc. (NASDAQ:EXLS) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$634m arriving 3.0% ahead of forecasts. Statutory earnings per share (EPS) were US$0.45, 7.4% ahead of estimates. 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 current consensus from ExlService Holdings' nine analysts is for revenues of US$2.75b in 2027. This would reflect a decent 18% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 16% to US$2.01. Before this earnings report, the analysts had been forecasting revenues of US$2.69b and earnings per share (EPS) of US$2.01 in 2027. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

Check out our latest analysis for ExlService Holdings

The analysts increased their price target 6.4% to US$48.00, perhaps signalling that higher revenues are a strong leading indicator for ExlService Holdings's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ExlService Holdings, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$43.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So although ExlService Holdings is expected to maintain its revenue growth rate, it's definitely expected 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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for ExlService Holdings going out to 2028, and you can see them free on our platform here.

You can also view our analysis of ExlService Holdings' balance sheet, and whether we think ExlService Holdings is carrying too much debt, for free on our platform here.

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