Earnings Miss: DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen Missed EPS By 13% And Analysts Are Revising Their Forecasts

DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. While revenues of €195m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit €2.24 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for DATA MODUL Produktion und Vertrieb von elektronischen Systemen

Following the latest results, DATA MODUL Produktion und Vertrieb von elektronischen Systemen's sole analyst are now forecasting revenues of €212.3m in 2022. This would be a notable 9.0% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 20% to €2.68. Yet prior to the latest earnings, the analyst had been anticipated revenues of €214.7m and earnings per share (EPS) of €3.34 in 2022. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at €62.00, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. One thing stands out from these estimates, which is that DATA MODUL Produktion und Vertrieb von elektronischen Systemen is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.0% annualised growth until the end of 2022. If achieved, this would be a much better result than the 2.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually for the foreseeable future. Although DATA MODUL Produktion und Vertrieb von elektronischen Systemen's revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DATA MODUL Produktion und Vertrieb von elektronischen Systemen. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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 DATA MODUL Produktion und Vertrieb von elektronischen Systemen .

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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.