Dino Polska S.A. (WSE:DNP) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Dino Polska S.A. (WSE:DNP) shareholders are probably feeling a little disappointed, since its shares fell 9.6% to zł313 in the week after its latest second-quarter results. It looks like the results were a bit of a negative overall. While revenues of zł7.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.0% to hit zł3.55 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Dino Polska

Taking into account the latest results, the current consensus from Dino Polska's twelve analysts is for revenues of zł29.5b in 2024. This would reflect a credible 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 4.6% to zł15.11. In the lead-up to this report, the analysts had been modelling revenues of zł30.3b and earnings per share (EPS) of zł16.44 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of zł422, suggesting the downgrades are not expected to have a long-term impact on Dino Polska's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Dino Polska analyst has a price target of zł527 per share, while the most pessimistic values it at zł299. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Dino Polska's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.3% per year. So it's pretty clear that, while Dino Polska's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at zł422, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Dino Polska going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Dino Polska's balance sheet, and whether we think Dino Polska is carrying too much debt, for free on our platform here.

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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.