Daimler Truck Holding AG Just Beat EPS By 6.6%: Here's What Analysts Think Will Happen Next

The investors in Daimler Truck Holding AG's (ETR:DTG) will be rubbing their hands together with glee today, after the share price leapt 21% to €44.62 in the week following its annual results. Daimler Truck Holding reported €56b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €4.62 beat expectations, being 6.6% higher than what the analysts expected. 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 Daimler Truck Holding after the latest results.

See our latest analysis for Daimler Truck Holding

Taking into account the latest results, the current consensus, from the 13 analysts covering Daimler Truck Holding, is for revenues of €54.1b in 2024. This implies a measurable 3.1% reduction in Daimler Truck Holding's revenue over the past 12 months. Statutory earnings per share are expected to decline 11% to €4.18 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €53.7b and earnings per share (EPS) of €4.09 in 2024. So the consensus seems to have become somewhat more optimistic on Daimler Truck Holding's earnings potential following these results.

The consensus price target was unchanged at €43.38, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Daimler Truck Holding at €53.00 per share, while the most bearish prices it at €31.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.1% by the end of 2024. This indicates a significant reduction from annual growth of 6.5% 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 3.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Daimler Truck Holding is expected to lag 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 Daimler Truck Holding's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Daimler Truck Holding's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €43.38, 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 Daimler Truck Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Daimler Truck Holding going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Daimler Truck Holding has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.