One DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) Analyst Just Cut Their EPS Forecasts

Today is shaping up negative for DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. 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 solitary analyst is for revenues of €241m in 2024, which would reflect a perceptible 6.9% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to sink 18% to €2.56 in the same period. Prior to this update, the analyst had been forecasting revenues of €272m and earnings per share (EPS) of €3.20 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.

Check out 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 14% to €60.00.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 6.9% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 8.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that DATA MODUL Produktion und Vertrieb von elektronischen Systemen's revenues are expected to perform substantially worse than 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. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that DATA MODUL Produktion und Vertrieb von elektronischen Systemen's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of DATA MODUL Produktion und Vertrieb von elektronischen Systemen.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for DATA MODUL Produktion und Vertrieb von elektronischen Systemen going out as far as 2026, and you can see them free on our platform here.

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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.