DFDS A/S Just Missed Earnings; Here's What Analysts Are Forecasting Now

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. Things were not great overall, with a surprise (statutory) loss of kr.0.89 per share on revenues of kr.7.0b, even though the analysts had been expecting a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for DFDS

Following the latest results, DFDS' four analysts are now forecasting revenues of kr.29.9b in 2024. This would be an okay 6.7% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr.28.9b and earnings per share (EPS) of kr.25.22 in 2024. The thing that stands out most is that, while there's been a modest lift to revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of kr.351. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic DFDS analyst has a price target of kr.402 per share, while the most pessimistic values it at kr.285. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that DFDS' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.1% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.8% annually. Even after the forecast slowdown in growth, it seems obvious that DFDS is also expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for DFDS next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

We have estimates for DFDS from its four analysts out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for DFDS (1 is potentially serious!) that you need to be mindful of.

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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.