DEME Group NV (EBR:DEME) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in DEME Group NV (EBR:DEME) had a good week, as its shares rose 3.4% to close at €134 following the release of its annual results. Results overall were respectable, with statutory earnings of €11.40 per share roughly in line with what the analysts had forecast. Revenues of €4.1b came in 3.5% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for DEME Group

Following last week's earnings report, DEME Group's six analysts are forecasting 2025 revenues to be €4.18b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 5.6% to €12.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.09b and earnings per share (EPS) of €11.41 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.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €183, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values DEME Group at €200 per share, while the most bearish prices it at €170. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting DEME Group is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DEME Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that DEME Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than DEME Group.

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 DEME Group following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at €183, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on DEME Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple DEME Group analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of DEME Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.