Earnings Release: Here's Why Analysts Cut Their Wipro Limited (NSE:WIPRO) Price Target To ₹210
The annual results for Wipro Limited (NSE:WIPRO) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of ₹926b and statutory earnings per share of ₹12.56. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Wipro's 40 analysts is for revenues of ₹992.2b in 2027. This would reflect a satisfactory 7.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 8.8% to ₹13.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹992.3b and earnings per share (EPS) of ₹13.70 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.
View our latest analysis for Wipro
With no major changes to earnings forecasts, the consensus price target fell 5.5% to ₹210, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Wipro analyst has a price target of ₹255 per share, while the most pessimistic values it at ₹170. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 analysts are definitely expecting Wipro's growth to accelerate, with the forecast 7.1% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Wipro is expected to grow at about the same rate as 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Wipro's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Wipro going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Wipro that you should be aware 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.