Shadowfax Technologies Limited (NSE:SHADOWFAX) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
As you might know, Shadowfax Technologies Limited (NSE:SHADOWFAX) recently reported its second-quarter numbers. It was a pretty mixed result, with revenues beating expectations to hit ₹15b. Statutory earnings fell 2.3% short of analyst forecasts, reaching ₹1.14 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Shadowfax Technologies' six analysts is for revenues of ₹62.1b in 2027. This reflects a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 32% to ₹5.03. In the lead-up to this report, the analysts had been modelling revenues of ₹61.1b and earnings per share (EPS) of ₹4.73 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Shadowfax Technologies
There's been no major changes to the consensus price target of ₹319, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Shadowfax Technologies at ₹350 per share, while the most bearish prices it at ₹280. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shadowfax Technologies is an easy business to forecast or the the analysts are all using similar assumptions.
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. We would highlight that Shadowfax Technologies' revenue growth is expected to slow, with the forecast 38% annualised growth rate until the end of 2027 being well below the historical 64% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. So it's pretty clear that, while Shadowfax Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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 Shadowfax Technologies following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹319, with the latest estimates not enough to have an impact on their price targets.
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. At Simply Wall St, we have a full range of analyst estimates for Shadowfax Technologies 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 1 warning sign for Shadowfax Technologies that you need to be mindful of.
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