Dermapharm Holding SE Beat Revenue Forecasts By 6.7%: Here's What Analysts Are Forecasting Next

Last week, you might have seen that Dermapharm Holding SE (ETR:DMP) released its quarterly result to the market. The early response was not positive, with shares down 2.9% to €34.70 in the past week. Results overall were respectable, with statutory earnings of €1.16 per share roughly in line with what the analysts had forecast. Revenues of €299m came in 6.7% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dermapharm Holding after the latest results.

See our latest analysis for Dermapharm Holding

Taking into account the latest results, Dermapharm Holding's five analysts currently expect revenues in 2024 to be €1.17b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 31% to €2.02. In the lead-up to this report, the analysts had been modelling revenues of €1.17b and earnings per share (EPS) of €2.07 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target fell 12% to €50.13, with the analysts clearly linking lower forecast earnings to the performance of the stock price. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Dermapharm Holding at €58.00 per share, while the most bearish prices it at €41.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that Dermapharm Holding's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Dermapharm Holding is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dermapharm Holding's revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Dermapharm Holding going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Dermapharm Holding (1 doesn't sit too well with us!) that 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.