Dometic Group AB (publ) (STO:DOM) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Dometic Group AB (publ) (STO:DOM) filed its annual result this time last week. The early response was not positive, with shares down 3.0% to kr80.58 in the past week. It looks like the results were a bit of a negative overall. While revenues of kr28b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit kr4.17 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.

See our latest analysis for Dometic Group

After the latest results, the consensus from Dometic Group's seven analysts is for revenues of kr26.8b in 2024, which would reflect a measurable 3.4% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to jump 21% to kr5.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr28.2b and earnings per share (EPS) of kr5.38 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the kr97.86 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Dometic Group analyst has a price target of kr130 per share, while the most pessimistic values it at kr75.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that revenue is expected to reverse, with a forecast 3.4% annualised decline to the end of 2024. That is a notable change from historical growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. It's pretty clear that Dometic Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dometic Group. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Dometic Group going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Dometic Group that you need to take into consideration.

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.