Earnings Update: Datalex plc (ISE:DLE) Just Reported And Analysts Are Trimming Their Forecasts

It's been a good week for Datalex plc (ISE:DLE) shareholders, because the company has just released its latest full-year results, and the shares gained 2.2% to €0.46. The results overall were pretty much dead in line with analyst forecasts; revenues were US$29m and statutory losses were US$0.068 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Datalex

Following the recent earnings report, the consensus from two analysts covering Datalex is for revenues of US$28.0m in 2024. This implies a perceptible 3.1% decline in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 15% from last year to US$0.058. Before this latest report, the consensus had been expecting revenues of US$31.0m and US$0.0021 per share in losses. While this year's revenue estimates dropped there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

There was no major change to the consensus price target of €0.52, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.8% per year. So while a broad number of companies are forecast to grow, unfortunately Datalex is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €0.52, 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 analyst estimates for Datalex going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 5 warning signs we've spotted with Datalex (including 2 which are a bit unpleasant) .

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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.

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