Earnings Update: doValue S.p.A. (BIT:DOV) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

As you might know, doValue S.p.A. (BIT:DOV) recently reported its yearly numbers. The results were positive, with revenue coming in at €418m, beating analyst expectations by 6.5%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for doValue

Taking into account the latest results, the consensus forecast from doValue's five analysts is for revenues of €486.7m in 2021, which would reflect a notable 16% improvement in sales compared to the last 12 months. doValue is also expected to turn profitable, with statutory earnings of €0.78 per share. Before this earnings report, the analysts had been forecasting revenues of €486.7m and earnings per share (EPS) of €0.78 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €11.21. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on doValue, with the most bullish analyst valuing it at €12.10 and the most bearish at €10.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the doValue's past performance and to peers in the same industry. We would highlight that doValue's revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2021 being well below the historical 26% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 50% per year. Factoring in the forecast slowdown in growth, it's pretty clear that doValue is still expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, they made no changes to their revenue estimates - and they expect sales to perform better than the wider industry. The consensus price target held steady at €11.21, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple doValue analysts - going out to 2022, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with doValue (including 1 which is a bit unpleasant) .

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