Earnings Beat: Dassault Systèmes SE Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The first-quarter results for Dassault Systèmes SE (EPA:DSY) were released last week, making it a good time to revisit its performance. Dassault Systèmes reported €1.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.21 beat expectations, being 5.2% higher than what the analysts expected. 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 Dassault Systèmes after the latest results.

See our latest analysis for Dassault Systèmes

After the latest results, the 18 analysts covering Dassault Systèmes are now predicting revenues of €6.40b in 2024. If met, this would reflect a reasonable 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 16% to €0.95. In the lead-up to this report, the analysts had been modelling revenues of €6.41b and earnings per share (EPS) of €0.92 in 2024. So the consensus seems to have become somewhat more optimistic on Dassault Systèmes' earnings potential following these results.

There's been no major changes to the consensus price target of €44.04, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Dassault Systèmes, with the most bullish analyst valuing it at €52.00 and the most bearish at €32.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dassault Systèmes shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Dassault Systèmes'historical trends, as the 8.6% annualised revenue growth to the end of 2024 is roughly in line with the 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.2% per year. So although Dassault Systèmes is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dassault Systèmes' earnings potential next year. 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 €44.04, 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 forecasts for Dassault Systèmes going out to 2026, 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.