Dassault Systèmes SE Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Dassault Systèmes SE (EPA:DSY) released its quarterly result to the market. The early response was not positive, with shares down 7.0% to €29.78 in the past week. It was not a great result overall. While revenues of €1.5b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 16% to hit €0.17 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Dassault Systèmes' 18 analysts currently expect revenues in 2025 to be €6.43b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 7.6% to €0.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.50b and earnings per share (EPS) of €0.96 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Dassault Systèmes

It might be a surprise to learn that the consensus price target was broadly unchanged at €36.12, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Dassault Systèmes at €47.00 per share, while the most bearish prices it at €26.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Dassault Systèmes' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 8.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dassault Systèmes.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dassault Systèmes' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €36.12, 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 2027, and you can see them free on our platform here.

We also provide an overview of the Dassault Systèmes Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.