DFI Retail Group Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for DFI Retail Group Holdings Limited (SGX:D01) shareholders, because the company has just released its latest annual results, and the shares gained 3.4% to US$2.14. It looks like a pretty bad result, all things considered. Although revenues of US$9.2b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 78% to hit US$0.024 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DFI Retail Group Holdings after the latest results.

Check out our latest analysis for DFI Retail Group Holdings

Taking into account the latest results, DFI Retail Group Holdings' seven analysts currently expect revenues in 2024 to be US$9.29b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 543% to US$0.15. In the lead-up to this report, the analysts had been modelling revenues of US$9.44b and earnings per share (EPS) of US$0.18 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at US$2.92, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on DFI Retail Group Holdings, with the most bullish analyst valuing it at US$3.49 and the most bearish at US$2.30 per share. 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.

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 also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, DFI Retail Group Holdings' top line has shrunk approximately 6.0% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.0% per year. Although DFI Retail Group Holdings' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

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. The consensus price target held steady at US$2.92, with the latest estimates not enough to have an impact on their price targets.

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

However, before you get too enthused, we've discovered 1 warning sign for DFI Retail Group Holdings 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.