D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi (NASDAQ:HEPS) Analysts Are Reducing Their Forecasts For Next Year

The latest analyst coverage could presage a bad day for D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi (NASDAQ:HEPS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the six analysts covering D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi are now predicting revenues of ₺11b in 2022. If met, this would reflect a huge 54% improvement in sales compared to the last 12 months. Losses are supposed to balloon 28% to ₺6.53 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of ₺12b and losses of ₺5.34 per share in 2022. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi

The consensus price target fell 18% to ₺101, implicitly signalling that lower earnings per share are a leading indicator for D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi's valuation. 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 D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi, with the most bullish analyst valuing it at ₺15.67 and the most bearish at ₺3.90 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi'shistorical trends, as the 41% annualised revenue growth to the end of 2022 is roughly in line with the 41% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So it's pretty clear that D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi going out to 2023, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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.

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