New Forecasts: Here's What Analysts Think The Future Holds For Defence Tech Holding S.p.A. (BIT:DTH)

Shareholders in Defence Tech Holding S.p.A. (BIT:DTH) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the latest upgrade, the single analyst covering Defence Tech Holding provided consensus estimates of €31m revenue in 2024, which would reflect a measurable 4.4% decline on its sales over the past 12 months. Statutory earnings per share are presumed to step up 10% to €0.26. Before this latest update, the analyst had been forecasting revenues of €28m and earnings per share (EPS) of €0.18 in 2024. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Defence Tech Holding

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Defence Tech Holding's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.4% by the end of 2024. This indicates a significant reduction from annual growth of 17% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Defence Tech Holding is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Defence Tech Holding's future.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Defence Tech Holding going out as far as 2025, and you can see them free on our platform 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.