Tata Communications Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Tata Communications Limited (NSE:TATACOMM) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share fell badly short of expectations, coming in at ₹35.09, some 21% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹248b. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Tata Communications' ten analysts is for revenues of ₹270.3b in 2027. This would reflect a solid 9.0% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 61% to ₹59.00. Before this earnings report, the analysts had been forecasting revenues of ₹270.3b and earnings per share (EPS) of ₹59.00 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 Tata Communications
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,930. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tata Communications at ₹2,600 per share, while the most bearish prices it at ₹1,450. 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.
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 can infer from the latest estimates that forecasts expect a continuation of Tata Communications'historical trends, as the 9.0% annualised revenue growth to the end of 2027 is roughly in line with the 9.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So although Tata Communications is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for Tata Communications 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 3 warning signs for Tata Communications 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.