Dexelance S.p.A. (BIT:DEX) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders might have noticed that Dexelance S.p.A. (BIT:DEX) filed its interim result this time last week. The early response was not positive, with shares down 8.0% to €6.20 in the past week. Dexelance reported in line with analyst predictions, delivering revenues of €155m and statutory earnings per share of €0.67, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Dexelance's three analysts are now forecasting revenues of €344.0m in 2025. This would be a modest 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to nosedive 25% to €0.26 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €325.6m and earnings per share (EPS) of €0.54 in 2025. While next year's revenue estimates increased, there was also a pretty serious reduction to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

See our latest analysis for Dexelance

The consensus price target fell 9.8% to €10.17, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Dexelance at €12.80 per share, while the most bearish prices it at €7.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Dexelance's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.6% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% annually. Even after the forecast slowdown in growth, it seems obvious that Dexelance is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dexelance. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Dexelance going out to 2027, and you can see them free on our platform here.

Even so, be aware that Dexelance is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.