Decisive Dividend Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, Decisive Dividend Corporation (CVE:DE) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 14% higher than the analysts had forecast, at CA$39m, while EPS were CA$0.05 beating analyst models by 25%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Decisive Dividend after the latest results.

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After the latest results, the four analysts covering Decisive Dividend are now predicting revenues of CA$147.4m in 2025. If met, this would reflect a satisfactory 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 148% to CA$0.35. In the lead-up to this report, the analysts had been modelling revenues of CA$141.1m and earnings per share (EPS) of CA$0.35 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

See our latest analysis for Decisive Dividend

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CA$7.56, implying that the uplift in revenue is not expected to greatly contribute to Decisive Dividend's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Decisive Dividend at CA$9.00 per share, while the most bearish prices it at CA$7.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Decisive Dividend's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.5% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.4% per year. So it's pretty clear that, while Decisive Dividend's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$7.56, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Decisive Dividend going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 5 warning signs for Decisive Dividend you should be aware of, and 2 of them make us uncomfortable.

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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.