Dassault Systèmes SE (EPA:DSY) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Dassault Systèmes SE (EPA:DSY) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of €1.5b were in line with what the analysts predicted, Dassault Systèmes surprised by delivering a statutory profit of €0.21 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Dassault Systèmes

Taking into account the latest results, the current consensus from Dassault Systèmes' 20 analysts is for revenues of €6.29b in 2024. This would reflect an okay 3.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.2% to €0.92. Before this earnings report, the analysts had been forecasting revenues of €6.32b and earnings per share (EPS) of €0.93 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €38.89. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Dassault Systèmes analyst has a price target of €47.00 per share, while the most pessimistic values it at €28.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 Dassault Systèmes' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.8% 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €38.89, 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 forecasts for Dassault Systèmes going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Dassault Systèmes' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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