DFDS A/S (CPH:DFDS) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

DFDS A/S (CPH:DFDS) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of kr.8.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr.10.36, missing estimates by 2.3%. 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.

See our latest analysis for DFDS

Taking into account the latest results, the most recent consensus for DFDS from four analysts is for revenues of kr.31.9b in 2025. If met, it would imply a decent 8.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 35% to kr.24.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.32.0b and earnings per share (EPS) of kr.24.64 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of kr.348, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values DFDS at kr.375 per share, while the most bearish prices it at kr.320. This is a very narrow spread of estimates, implying either that DFDS is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that DFDS' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.0% per year. So it's pretty clear that, while DFDS' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 DFDS. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple DFDS analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that DFDS is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.