Revenue Beat: DSV A/S Exceeded Revenue Forecasts By 5.8% And Analysts Are Updating Their Estimates

It's been a good week for DSV A/S (CPH:DSV) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to kr.1,250. It was a workmanlike result, with revenues of kr.41b coming in 5.8% ahead of expectations, and statutory earnings per share of kr.12.90, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DSV after the latest results.

View our latest analysis for DSV

Taking into account the latest results, the consensus forecast from DSV's 15 analysts is for revenues of kr.157.2b in 2024. This reflects a satisfactory 3.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be kr.52.49, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr.154.4b and earnings per share (EPS) of kr.53.64 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr.1,428, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on DSV, with the most bullish analyst valuing it at kr.1,640 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DSV's past performance and to peers in the same industry. We would highlight that DSV's revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.9% per year. So it's pretty clear that, while DSV's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DSV. 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. The consensus price target held steady at kr.1,428, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for DSV going out to 2026, and you can see them free on our platform here.

You can also see whether DSV is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.

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