Stock Analysis

DSV A/S (CPH:DSV) Yearly Results: Here's What Analysts Are Forecasting For This Year

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Shareholders of DSV A/S (CPH:DSV) will be pleased this week, given that the stock price is up 13% to kr.1,270 following its latest annual results. It was a credible result overall, with revenues of kr.236b and statutory earnings per share of kr.76.20 both in line with analyst estimates, showing that DSV is executing in line with expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for DSV

CPSE:DSV Earnings and Revenue Growth February 6th 2023

After the latest results, the consensus from DSV's 15 analysts is for revenues of kr.184.3b in 2023, which would reflect a substantial 22% decline in sales compared to the last year of performance. Statutory earnings per share are expected to crater 31% to kr.56.20 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr.185.2b and earnings per share (EPS) of kr.55.76 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of kr.1,360, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on DSV, with the most bullish analyst valuing it at kr.1,520 and the most bearish at kr.1,040 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 22% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 27% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 3.7% per year. The forecasts do look bearish for DSV, since they're expecting it to shrink faster than the industry.

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. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the sales trajectory in the near term, even though sales are expected to trail the wider industry. The consensus price target held steady at kr.1,360, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple DSV analysts - going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for DSV that you need to take into consideration.

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