Coforge Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a pretty great week for Coforge Limited (NSE:COFORGE) shareholders, with its shares surging 17% to ₹1,715 in the week since its latest quarterly results. It was not a great result overall. While revenues of ₹55b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit ₹12.28 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Coforge after the latest results.
Taking into account the latest results, the most recent consensus for Coforge from 34 analysts is for revenues of ₹247.3b in 2027. If met, it would imply a huge 36% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 46% to ₹57.96. In the lead-up to this report, the analysts had been modelling revenues of ₹237.8b and earnings per share (EPS) of ₹57.03 in 2027. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
Check out our latest analysis for Coforge
The analysts increased their price target 10% to ₹1,895, perhaps signalling that higher revenues are a strong leading indicator for Coforge'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. The most optimistic Coforge analyst has a price target of ₹2,580 per share, while the most pessimistic values it at ₹1,187. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Coforge's growth to accelerate, with the forecast 50% annualised growth to the end of 2027 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Coforge 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 in mind, we wouldn't be too quick to come to a conclusion on Coforge. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Coforge going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Coforge (including 1 which is significant) .
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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.