Earnings Update: L&T Technology Services Limited (NSE:LTTS) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
Investors in L&T Technology Services Limited (NSE:LTTS) had a good week, as its shares rose 8.2% to close at ₹3,480 following the release of its quarterly results. L&T Technology Services reported in line with analyst predictions, delivering revenues of ₹29b and statutory earnings per share of ₹33.59, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from L&T Technology Services' 29 analysts is for revenues of ₹121.0b in 2027. This would reflect an okay 7.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 18% to ₹143. Before this earnings report, the analysts had been forecasting revenues of ₹120.9b and earnings per share (EPS) of ₹143 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for L&T Technology Services
There were no changes to revenue or earnings estimates or the price target of ₹3,545, suggesting that the company has met expectations in its recent result. 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 L&T Technology Services at ₹4,150 per share, while the most bearish prices it at ₹2,950. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the L&T Technology Services' past performance and to peers in the same industry. We would highlight that L&T Technology Services' revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2027 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than L&T Technology Services.
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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that L&T Technology Services' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹3,545, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for L&T Technology Services going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for L&T Technology Services you should know about.
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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.