Analysts Just Published A Bright New Outlook For d'Amico International Shipping S.A.'s (BIT:DIS)

d'Amico International Shipping S.A. (BIT:DIS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the consensus from three analysts covering d'Amico International Shipping is for revenues of US$353m in 2023, implying a sizeable 26% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to drop 18% to US$0.09 in the same period. Previously, the analysts had been modelling revenues of US$319m and earnings per share (EPS) of US$0.071 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for d'Amico International Shipping

With these upgrades, we're not surprised to see that the analysts have lifted their price target 23% to US$0.60 per share. 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 d'Amico International Shipping at US$0.58 per share, while the most bearish prices it at US$0.54. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting d'Amico International Shipping is an easy business to forecast or the underlying assumptions are obvious.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that d'Amico International Shipping's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 26% to the end of 2023. This tops off a historical decline of 5.5% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 7.0% annually. While this is interesting, d'Amico International Shipping's, revenues are still expected to shrink next year, and at a faster rate than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. With a serious upgrade to expectations and a rising price target, it might be time to take another look at d'Amico International Shipping.

Analysts are clearly in love with d'Amico International Shipping at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .

You can also see our analysis of d'Amico International Shipping's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.