DATAGROUP SE (ETR:D6H) Just Released Its Annual Earnings: Here's What Analysts Think

It's been a pretty great week for DATAGROUP SE (ETR:D6H) shareholders, with its shares surging 15% to €44.35 in the week since its latest yearly results. Results overall were respectable, with statutory earnings of €3.13 per share roughly in line with what the analysts had forecast. Revenues of €534m came in 2.7% ahead of analyst predictions. 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 DATAGROUP after the latest results.

See our latest analysis for DATAGROUP

Taking into account the latest results, the current consensus from DATAGROUP's six analysts is for revenues of €558.0m in 2025. This would reflect a reasonable 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 21% to €3.81. In the lead-up to this report, the analysts had been modelling revenues of €554.8m and earnings per share (EPS) of €3.66 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €76.92, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on DATAGROUP, with the most bullish analyst valuing it at €86.00 and the most bearish at €68.50 per share. This is a very narrow spread of estimates, implying either that DATAGROUP is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that DATAGROUP's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2025 being well below the historical 9.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than DATAGROUP.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around DATAGROUP'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 DATAGROUP's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on DATAGROUP. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for DATAGROUP going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for DATAGROUP that you need to take into consideration.

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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.