Revenue Miss: JDC Group AG Fell 8.3% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

There's been a notable change in appetite for JDC Group AG (ETR:A8A) shares in the week since its third-quarter report, with the stock down 17% to €14.75. Results look mixed - while revenue fell marginally short of analyst estimates at €35m, statutory earnings were in line with expectations, at €0.07 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for JDC Group

After the latest results, the twin analysts covering JDC Group are now predicting revenues of €194.9m in 2023. If met, this would reflect a huge 22% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 335% to €0.39. In the lead-up to this report, the analysts had been modelling revenues of €202.4m and earnings per share (EPS) of €0.47 in 2023. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a substantial drop in earnings per share numbers.

The consensus price target fell 8.8% to €36.50, with the weaker earnings outlook clearly leading valuation estimates.

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. The analysts are definitely expecting JDC Group's growth to accelerate, with the forecast 17% annualised growth to the end of 2023 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JDC Group to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on JDC Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with JDC Group .

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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.