Dovre Group Plc (HEL:DOV1V) Released Earnings Last Week And Analysts Lifted Their Price Target To €0.80

Last week, you might have seen that Dovre Group Plc (HEL:DOV1V) released its yearly result to the market. The early response was not positive, with shares down 6.1% to €0.60 in the past week. It looks like the results were a bit of a negative overall. While revenues of €203m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.0% to hit €0.049 per share. The analyst 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 analyst has changed their earnings models, following these results.

See our latest analysis for Dovre Group

Following the latest results, Dovre Group's single analyst are now forecasting revenues of €209.8m in 2023. This would be a reasonable 3.4% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to fall 18% to €0.04 in the same period. Before this earnings report, the analyst had been forecasting revenues of €211.8m and earnings per share (EPS) of €0.05 in 2023. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 6.7% to €0.80, suggesting the revised estimates are not indicative of a weaker long-term future 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. It's pretty clear that there is an expectation that Dovre Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dovre Group.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Dovre Group's revenues are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Dovre Group going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Dovre Group you should be aware 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.