Datalogic S.p.A. Just Beat Revenue Estimates By 6.6%

Shareholders of Datalogic S.p.A. (BIT:DAL) will be pleased this week, given that the stock price is up 11% to €6.11 following its latest second-quarter results. It was a workmanlike result, with revenues of €133m coming in 6.6% ahead of expectations, and statutory earnings per share of €0.18, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Datalogic

Following the latest results, Datalogic's five analysts are now forecasting revenues of €521.7m in 2024. This would be an okay 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 163% to €0.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of €520.4m and earnings per share (EPS) of €0.30 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of €7.38, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Datalogic, with the most bullish analyst valuing it at €8.00 and the most bearish at €6.40 per share. This is a very narrow spread of estimates, implying either that Datalogic is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Datalogic's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Datalogic to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Datalogic following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €7.38, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Datalogic. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Datalogic going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Datalogic that we have uncovered.

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.

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