Delfi Limited Just Missed EPS By 9.9%: Here's What Analysts Think Will Happen Next

Delfi Limited (SGX:P34) just released its latest yearly report and things are not looking great. Delfi missed analyst forecasts, with revenues of US$538m and statutory earnings per share (EPS) of US$0.076, falling short by 3.0% and 9.9% respectively. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Delfi

Following the latest results, Delfi's three analysts are now forecasting revenues of US$580.5m in 2024. This would be a reasonable 7.9% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$0.076, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$600.2m and earnings per share (EPS) of US$0.09 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The analysts made no major changes to their price target of S$1.61, suggesting the downgrades are not expected to have a long-term impact on Delfi's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Delfi, with the most bullish analyst valuing it at S$1.77 and the most bearish at S$1.47 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Delfi's growth to accelerate, with the forecast 7.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Delfi is expected to grow much faster than its 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. They also downgraded Delfi's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. 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.

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 Delfi analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Delfi (including 1 which is potentially serious) .

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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.