Sterlite Technologies Limited Just Beat Revenue By 21%: Here's What Analysts Think Will Happen Next
As you might know, Sterlite Technologies Limited (NSE:STLTECH) recently reported its quarterly numbers. Revenue of ₹19b beat expectations by an impressive 21%, while statutory earnings per share (EPS) were ₹1.11, in line with 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.
Following the latest results, Sterlite Technologies' dual analysts are now forecasting revenues of ₹80.0b in 2027. This would be a substantial 42% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 209% to ₹15.40. In the lead-up to this report, the analysts had been modelling revenues of ₹69.3b and earnings per share (EPS) of ₹8.70 in 2027. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.
See our latest analysis for Sterlite Technologies
With these upgrades, we're not surprised to see that the analysts have lifted their price target 27% to ₹695per share.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Sterlite Technologies is forecast to grow faster in the future than it has in the past, with revenues expected to display 59% annualised growth until the end of 2027. If achieved, this would be a much better result than the 5.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 34% annually. Not only are Sterlite Technologies' revenues expected to improve, it seems that the analysts are also expecting it 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 Sterlite Technologies following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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 analyst estimates for Sterlite Technologies going out as far as 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 Sterlite Technologies (1 makes us a bit uncomfortable!) that you need to be mindful 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.