DFDS A/S Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The second-quarter results for DFDS A/S (CPH:DFDS) were released last week, making it a good time to revisit its performance. Revenues fell 3.6% short of expectations, at kr.7.8b. Earnings correspondingly dipped, with DFDS reporting a statutory loss of kr.1.67 per share, whereas the analysts had previously modelled a profit in this period. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

After the latest results, the four analysts covering DFDS are now predicting revenues of kr.31.4b in 2025. If met, this would reflect a modest 2.8% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with DFDS forecast to report a statutory profit of kr.4.90 per share. Before this earnings report, the analysts had been forecasting revenues of kr.31.8b and earnings per share (EPS) of kr.5.19 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for DFDS

It might be a surprise to learn that the consensus price target was broadly unchanged at kr.136, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values DFDS at kr.200 per share, while the most bearish prices it at kr.99.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DFDS' past performance and to peers in the same industry. We would highlight that DFDS' revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.0% per year. So it's clear that despite the slowdown in growth, DFDS is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DFDS. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that DFDS' revenue is expected to perform better 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 forecasts for DFDS going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for DFDS (1 makes us a bit uncomfortable!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.