Hexaware Technologies Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
It's been a mediocre week for Hexaware Technologies Limited (NSE:HEXT) shareholders, with the stock dropping 15% to ₹502 in the week since its latest third-quarter results. Revenues were ₹39b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹7.01 were also better than expected, beating analyst predictions by 14%. 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. 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 most recent consensus for Hexaware Technologies from 19 analysts is for revenues of ₹164.9b in 2027. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 16% to ₹26.77. Before this earnings report, the analysts had been forecasting revenues of ₹168.0b and earnings per share (EPS) of ₹27.40 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
View our latest analysis for Hexaware Technologies
The consensus price target held steady at ₹551, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Hexaware Technologies, with the most bullish analyst valuing it at ₹630 and the most bearish at ₹470 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Hexaware Technologies' revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2027 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% annually. Even after the forecast slowdown in growth, it seems obvious that Hexaware Technologies is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target held steady at ₹551, 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 Hexaware Technologies going out to 2028, and you can see them free on our platform here..
We also provide an overview of the Hexaware Technologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.