Dometic Group AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Dometic Group AB (publ) (STO:DOM) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to kr57.75 in the week after its latest third-quarter results. It was a pretty negative result overall, with revenues of kr5.6b missing analyst predictions by 3.6%. Worse, the business reported a statutory loss of kr6.01 per share, a substantial decline on analyst expectations of a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Dometic Group

Following the latest results, Dometic Group's seven analysts are now forecasting revenues of kr25.7b in 2025. This would be a reasonable 2.1% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Dometic Group forecast to report a statutory profit of kr4.33 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr26.1b and earnings per share (EPS) of kr4.68 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The average price target fell 5.4% to kr79.00, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. Currently, the most bullish analyst values Dometic Group at kr110 per share, while the most bearish prices it at kr60.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Dometic Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Dometic Group is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Dometic Group going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Dometic Group (1 is significant!) that you should be aware of.

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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.