Earnings Miss: Dätwyler Holding AG Missed EPS By 18% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Dätwyler Holding AG (VTX:DAE), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Dätwyler Holding missed earnings this time around, with CHF1.2b revenue coming in 2.5% below what the analysts had modelled. Statutory earnings per share (EPS) of CHF3.93 also fell short of expectations by 18%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Dätwyler Holding

After the latest results, the seven analysts covering Dätwyler Holding are now predicting revenues of CHF1.18b in 2024. If met, this would reflect a satisfactory 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 24% to CHF4.87. In the lead-up to this report, the analysts had been modelling revenues of CHF1.23b and earnings per share (EPS) of CHF6.14 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CHF187 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Dätwyler Holding at CHF220 per share, while the most bearish prices it at CHF155. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dätwyler Holding's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Dätwyler Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.5% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.9% per year. So although Dätwyler Holding's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dätwyler Holding. 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. The consensus price target held steady at CHF187, 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 Dätwyler Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Dätwyler Holding analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Dätwyler Holding .

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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.