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

DSV A/S (CPH:DSV) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to kr.1,032 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of kr.38b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.7% to hit kr.11.30 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for DSV

Taking into account the latest results, the consensus forecast from DSV's 16 analysts is for revenues of kr.151.5b in 2024. This reflects an okay 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.0% to kr.53.65 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr.151.4b and earnings per share (EPS) of kr.56.15 in 2024. 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr.1,419, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic DSV analyst has a price target of kr.1,690 per share, while the most pessimistic values it at kr.1,080. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await DSV shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that DSV's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Compare this to the 30 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.7% per year. So it's pretty clear that, while DSV's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DSV. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for DSV going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether DSV's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.