Earnings Miss: Delegat Group Limited Missed EPS By 47% And Analysts Are Revising Their Forecasts

It's been a pretty great week for Delegat Group Limited (NZSE:DGL) shareholders, with its shares surging 10% to NZ$5.51 in the week since its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of NZ$378m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 47% to hit NZ$0.31 per share. Following the result, the analyst has 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 analyst is expecting for next year.

View our latest analysis for Delegat Group

After the latest results, the sole analyst covering Delegat Group are now predicting revenues of NZ$388.3m in 2025. If met, this would reflect a credible 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 84% to NZ$0.57. Before this earnings report, the analyst had been forecasting revenues of NZ$382.8m and earnings per share (EPS) of NZ$0.50 in 2025. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.

The average the analyst price target fell 31% to NZ$7.35, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Delegat Group's past performance and to peers in the same industry. We would highlight that Delegat Group's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2025 being well below the historical 6.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Delegat Group.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Delegat Group following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Delegat Group's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Delegat Group's future valuation.

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 analyst estimates for Delegat Group going out as far as 2027, 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 Delegat Group (1 is a bit unpleasant!) that we have uncovered.

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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.