Distribuidora Internacional de Alimentación, S.A. (BME:DIA) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Distribuidora Internacional de Alimentación, S.A. (BME:DIA) just kicked off its latest full-year results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of €6.9b leading estimates by 4.2%. Statutory losses were smaller than the analystsexpected, coming in at €0.05 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Distribuidora Internacional de Alimentación after the latest results.

Check out our latest analysis for Distribuidora Internacional de Alimentación

Taking into account the latest results, the most recent consensus for Distribuidora Internacional de Alimentación from five analysts is for revenues of €7.16b in 2021 which, if met, would be a modest 3.4% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching €0.14 per share. Before this latest report, the consensus had been expecting revenues of €6.90b and €0.033 per share in losses. So it's pretty clear the analysts have mixed opinions on Distribuidora Internacional de Alimentación even after this update; although they upped their revenue numbers, it came at the cost of a considerable increase to per-share losses.

The consensus price target stayed unchanged at €0.15, seeming to suggest that higher forecast losses are not expected to have a long term impact on the 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. The most optimistic Distribuidora Internacional de Alimentación analyst has a price target of €0.22 per share, while the most pessimistic values it at €0.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Distribuidora Internacional de Alimentación's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 3.4%, well above its historical decline of 6.4% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 3.9% next year. So while Distribuidora Internacional de Alimentación's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Distribuidora Internacional de Alimentación. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at €0.15, 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 estimates - from multiple Distribuidora Internacional de Alimentación analysts - going out to 2023, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Distribuidora Internacional de Alimentación (including 1 which makes us a bit uncomfortable) .

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