Dassault Systèmes SE (EPA:DSY) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

There's been a notable change in appetite for Dassault Systèmes SE (EPA:DSY) shares in the week since its full-year report, with the stock down 12% to €42.13. It looks like the results were a bit of a negative overall. While revenues of €6.0b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.6% to hit €0.79 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Dassault Systèmes

Taking into account the latest results, the current consensus from Dassault Systèmes' 19 analysts is for revenues of €6.39b in 2024. This would reflect an okay 7.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 13% to €0.90. In the lead-up to this report, the analysts had been modelling revenues of €6.47b and earnings per share (EPS) of €0.94 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 €45.54, 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 Dassault Systèmes analyst has a price target of €57.00 per share, while the most pessimistic values it at €33.00. 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 Dassault Systèmes' revenue growth is expected to slow, with the forecast 7.4% annualised growth rate until the end of 2024 being well below the historical 11% 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) 8.6% annually. So it's pretty clear that, while Dassault Systèmes' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €45.54, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dassault Systèmes analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.