Dalrymple Bay Infrastructure Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Dalrymple Bay Infrastructure Limited (ASX:DBI) had a good week, as its shares rose 4.9% to close at AU$3.82 following the release of its full-year results. Dalrymple Bay Infrastructure beat revenue forecasts by a solid 11% to hit AU$767m. Statutory earnings per share fell 11% short of expectations, at AU$0.16. 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.

Check out our latest analysis for Dalrymple Bay Infrastructure

After the latest results, the consensus from Dalrymple Bay Infrastructure's five analysts is for revenues of AU$735.6m in 2025, which would reflect a small 4.0% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to leap 23% to AU$0.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$701.8m and earnings per share (EPS) of AU$0.19 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to AU$4.08per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Dalrymple Bay Infrastructure analyst has a price target of AU$4.30 per share, while the most pessimistic values it at AU$3.90. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Dalrymple Bay Infrastructure is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.0% by the end of 2025. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. It's pretty clear that Dalrymple Bay Infrastructure's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dalrymple Bay Infrastructure's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dalrymple Bay Infrastructure analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Dalrymple Bay Infrastructure that you need to be mindful of.

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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.