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Last week, you might have seen that Genpact Limited (NYSE:G) released its full-year result to the market. The early response was not positive, with shares down 3.8% to US$42.57 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$3.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.1% to hit US$1.56 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
View our latest analysis for Genpact
Taking into account the latest results, the current consensus from Genpact's ten analysts is for revenues of US$3.92b in 2020, which would reflect a notable 11% increase on its sales over the past 12 months. Statutory earnings per share are expected to expand 10% to US$1.77. Before this earnings report, analysts had been forecasting revenues of US$3.84b and earnings per share (EPS) of US$1.84 in 2020. Overall it looks as though analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a small dip in to its earnings per share forecasts.
The consensus price target was unchanged at US$48.50, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. Currently, the most bullish analyst values Genpact at US$52.00 per share, while the most bearish prices it at US$44.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
In addition, we can look to Genpact's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. Analysts are definitely expecting Genpact's growth to accelerate, with the forecast 11% growth ranking favourably alongside historical growth of 8.0% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 11% next year. Genpact is expected to grow at about the same rate as its market, so it's not clear that we can draw any conclusions from its growth relative to competitors.