Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.2%to hit €4.3b. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Danieli & C. Officine Meccaniche

Following last week's earnings report, Danieli & C. Officine Meccaniche's three analysts are forecasting 2025 revenues to be €4.32b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.36b and earnings per share (EPS) of €3.57 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €42.00. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Danieli & C. Officine Meccaniche at €47.00 per share, while the most bearish prices it at €38.00. This is a very narrow spread of estimates, implying either that Danieli & C. Officine Meccaniche is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Danieli & C. Officine Meccaniche's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.8% annualised decline to the end of 2025. That is a notable change from historical growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Danieli & C. Officine Meccaniche is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

We have estimates for Danieli & C. Officine Meccaniche from its three analysts out to 2027, and you can see them free on our platform here.

You can also see our analysis of Danieli & C. Officine Meccaniche's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.