As you might know, Quess Corp Limited (NSE:QUESS) just kicked off its latest quarterly results with some very strong numbers. Quess beat earnings, with revenues hitting ₹44b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Quess' eight analysts are now forecasting revenues of ₹175.1b in 2027. This would be a reasonable 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 3.7% to ₹19.13. In the lead-up to this report, the analysts had been modelling revenues of ₹171.3b and earnings per share (EPS) of ₹18.53 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for Quess
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹349, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Quess analyst has a price target of ₹384 per share, while the most pessimistic values it at ₹230. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quess' past performance and to peers in the same industry. It's clear from the latest estimates that Quess' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Quess is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Quess following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹349, 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 Quess going out to 2029, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Quess that you should be aware of.
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