One DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) Analyst Is Reducing Their Forecasts For This Year

The latest analyst coverage could presage a bad day for DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the consensus from DATA MODUL Produktion und Vertrieb von elektronischen Systemen's solo analyst is for revenues of €272m in 2024, which would reflect a perceptible 4.0% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to dive 22% to €3.20 in the same period. Before this latest update, the analyst had been forecasting revenues of €320m and earnings per share (EPS) of €5.48 in 2024. Indeed, we can see that the analyst is a lot more bearish about DATA MODUL Produktion und Vertrieb von elektronischen Systemen's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

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

It'll come as no surprise then, to learn that the analyst has cut their price target 25% to €70.00.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.0% by the end of 2024. This indicates a significant reduction from annual growth of 6.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - DATA MODUL Produktion und Vertrieb von elektronischen Systemen is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for DATA MODUL Produktion und Vertrieb von elektronischen Systemen. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.