Yahoo Finance Sify Technologies Limited (NASDAQ:SIFY) Just Reported Earnings, And Analysts Cut Their Target Price
Sify Technologies Limited (NASDAQ:SIFY) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$1.19 in the week after its latest annual results. It was a weak result overall, with Sify Technologies reporting ₹36b in revenues, which was 22% less than what the analyst had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Sify Technologies
Taking into account the latest results, the consensus forecast from Sify Technologies' solitary analyst is for revenues of ₹52.0b in 2025. This reflects a sizeable 46% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of ₹52.6b and break-even in 2025. Overall, while the analyst has reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
The average price target fell 57% to US$3.00, withthe analyst clearly having become less optimistic about Sify Technologies'prospects following its latest earnings.
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 analyst is definitely expecting Sify Technologies' growth to accelerate, with the forecast 46% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sify Technologies is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
One Sify Technologies broker/analyst has provided estimates out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Sify Technologies has 3 warning signs (and 2 which make us uncomfortable) we think 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.
