ExlService Holdings, Inc. (NASDAQ:EXLS) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.2% to hit US$501m. ExlService Holdings reported statutory earnings per share (EPS) US$0.40, which was a notable 19% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, ExlService Holdings' nine analysts are now forecasting revenues of US$2.06b in 2025. This would be a meaningful 8.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.6% to US$1.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.05b and earnings per share (EPS) of US$1.42 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for ExlService Holdings

There's been no major changes to the consensus price target of US$54.35, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 ExlService Holdings at US$56.00 per share, while the most bearish prices it at US$52.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that ExlService Holdings' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% annually. Even after the forecast slowdown in growth, it seems obvious that ExlService Holdings is also expected to grow faster than the wider industry.

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 ExlService Holdings following these results. 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. 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 ExlService Holdings going out to 2027, and you can see them free on our platform here.

We also provide an overview of the ExlService Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.