Earnings Miss: DATAGROUP SE Missed EPS By 11% And Analysts Are Revising Their Forecasts

Investors in DATAGROUP SE (ETR:D6H) had a good week, as its shares rose 7.9% to close at €43.05 following the release of its third-quarter results. It was not a great result overall. While revenues of €132m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit €0.71 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for DATAGROUP

Taking into account the latest results, the consensus forecast from DATAGROUP's six analysts is for revenues of €556.0m in 2025. This reflects a notable 8.6% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €555.9m and earnings per share (EPS) of €3.81 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €76.33. 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. The most optimistic DATAGROUP analyst has a price target of €86.00 per share, while the most pessimistic values it at €68.50. 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 6.8% annualised growth rate until the end of 2025 being well below the historical 9.9% 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 8.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that DATAGROUP is also expected to grow slower than other industry participants.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. 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.

We have estimates for DATAGROUP from its six analysts out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for DATAGROUP 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.