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

Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a pretty good result, with revenues of €3.6b, and Danieli & C. Officine Meccaniche came in a solid 11% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Danieli & C. Officine Meccaniche

Following the recent earnings report, the consensus from three analysts covering Danieli & C. Officine Meccaniche is for revenues of €3.52b in 2023, implying a measurable 3.3% decline in sales compared to the last 12 months. Statutory earnings per share are expected to crater 30% to €2.14 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €3.37b and earnings per share (EPS) of €2.03 in 2023. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of €26.83, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Danieli & C. Officine Meccaniche analyst has a price target of €32.00 per share, while the most pessimistic values it at €22.50. 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 Danieli & C. Officine Meccaniche shareholders.

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. We would highlight that sales are expected to reverse, with a forecast 3.3% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 4.5% 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 9.5% 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Danieli & C. Officine Meccaniche following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Danieli & C. Officine Meccaniche going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Danieli & C. Officine Meccaniche has 1 warning sign we think you should be aware of.

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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.