It's been a good week for Dürr Aktiengesellschaft (ETR:DUE) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.8% to €25.60. It looks like a credible result overall - although revenues of €815m were what the analysts expected, Dürr surprised by delivering a (statutory) profit of €0.22 per share, an impressive 156% above what was forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the 14 analysts covering Dürr are now predicting revenues of €3.59b in 2021. If met, this would reflect a credible 3.2% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 202% to €1.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.60b and earnings per share (EPS) of €1.61 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €28.68. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Dürr at €37.00 per share, while the most bearish prices it at €20.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dürr's past performance and to peers in the same industry. The analysts are definitely expecting Dürr's growth to accelerate, with the forecast 3.2% growth ranking favourably alongside historical growth of 0.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Dürr is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €28.68, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Dürr going out to 2024, and you can see them free on our platform here..
Even so, be aware that Dürr is showing 3 warning signs in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. 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.
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