Revenue Beat: Danieli & C. Officine Meccaniche S.p.A. Beat Analyst Estimates By 12%

It's been a good week for Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) shareholders, because the company has just released its latest half-yearly results, and the shares gained 4.7% to €33.40. It was a mildly positive result, with revenues exceeding expectations at €2.1b, while statutory earnings per share (EPS) of €3.29 were in line with analyst forecasts. 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.

See our latest analysis for Danieli & C. Officine Meccaniche

Taking into account the latest results, the most recent consensus for Danieli & C. Officine Meccaniche from three analysts is for revenues of €4.27b in 2024. If met, it would imply a reasonable 3.8% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €4.14b and earnings per share (EPS) of €2.79 in 2024. What's really interesting is that while the consensus made a small lift in revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

There's been no real change to the consensus price target of €37.27, with Danieli & C. Officine Meccaniche seemingly executing in line with expectations. 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. The most optimistic Danieli & C. Officine Meccaniche analyst has a price target of €39.00 per share, while the most pessimistic values it at €36.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Danieli & C. Officine Meccaniche's revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% annually. So it's pretty clear that, while Danieli & C. Officine Meccaniche's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at €37.27, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Danieli & C. Officine Meccaniche from its three analysts out to 2026, 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.

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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.