Earnings Update: Persistent Systems Limited (NSE:PERSISTENT) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts
Last week, you might have seen that Persistent Systems Limited (NSE:PERSISTENT) released its full-year result to the market. The early response was not positive, with shares down 7.9% to ₹5,065 in the past week. It was a credible result overall, with revenues of ₹147b and statutory earnings per share of ₹119 both in line with analyst estimates, showing that Persistent Systems is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Persistent Systems after the latest results.
Following the latest results, Persistent Systems' 33 analysts are now forecasting revenues of ₹176.3b in 2027. This would be a decent 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 18% to ₹147. In the lead-up to this report, the analysts had been modelling revenues of ₹175.6b and earnings per share (EPS) of ₹148 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.
Check out our latest analysis for Persistent Systems
There were no changes to revenue or earnings estimates or the price target of ₹5,611, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Persistent Systems, with the most bullish analyst valuing it at ₹6,600 and the most bearish at ₹3,611 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Persistent Systems shareholders.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 23% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.2% per year. So it's pretty clear that Persistent Systems is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Persistent Systems going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.