DEFAMA Deutsche Fachmarkt AG (ETR:DEF) Just Reported And Analysts Have Been Cutting Their Estimates

It's been a good week for DEFAMA Deutsche Fachmarkt AG (ETR:DEF) shareholders, because the company has just released its latest half-yearly results, and the shares gained 4.3% to €29.00. It was a workmanlike result, with revenues of €15m coming in 2.2% ahead of expectations, and statutory earnings per share of €0.38, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from DEFAMA Deutsche Fachmarkt's three analysts is for revenues of €29.0m in 2025. This would reflect a credible 4.0% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €31.3m and earnings per share (EPS) of €1.04 in 2025. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

View our latest analysis for DEFAMA Deutsche Fachmarkt

There's been no real change to the consensus price target of €33.77, with DEFAMA Deutsche Fachmarkt seemingly executing in line with expectations. 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. There are some variant perceptions on DEFAMA Deutsche Fachmarkt, with the most bullish analyst valuing it at €35.00 and the most bearish at €31.80 per share. This is a very narrow spread of estimates, implying either that DEFAMA Deutsche Fachmarkt is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 DEFAMA Deutsche Fachmarkt's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 20% annually. So it's clear that despite the slowdown in growth, DEFAMA Deutsche Fachmarkt is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for DEFAMA Deutsche Fachmarkt next year. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of DEFAMA Deutsche Fachmarkt's three analysts has provided estimates out to 2027, which can be seen for free on our platform here.

Even so, be aware that DEFAMA Deutsche Fachmarkt is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

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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.