DMG Blockchain Solutions Inc. (CVE:DMGI) Just Reported And Analysts Have Been Cutting Their Estimates

It's been a good week for DMG Blockchain Solutions Inc. (CVE:DMGI) shareholders, because the company has just released its latest full-year results, and the shares gained 4.0% to CA$0.26. It was a respectable set of results; while revenues of CA$47m were in line with analyst predictions, statutory losses were 17% smaller than expected, with DMG Blockchain Solutions losing CA$0.05 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus, from the two analysts covering DMG Blockchain Solutions, is for revenues of CA$36.9m in 2026. This implies a sizeable 22% reduction in DMG Blockchain Solutions' revenue over the past 12 months. Losses are forecast to balloon 160% to CA$0.13 per share. Before this earnings announcement, the analysts had been modelling revenues of CA$48.3m and losses of CA$0.095 per share in 2026. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for DMG Blockchain Solutions

The analysts lifted their price target 11% to CA$0.93, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DMG Blockchain Solutions' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 22% annualised decline to the end of 2026. That is a notable change from historical growth of 23% 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 17% annually for the foreseeable future. It's pretty clear that DMG Blockchain Solutions' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at DMG Blockchain Solutions. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

You still need to take note of risks, for example - DMG Blockchain Solutions has 3 warning signs we think you should be aware 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.