Yahoo Finance Daimler Truck Holding AG Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Daimler Truck Holding AG (ETR:DTG) released its quarterly result to the market. The early response was not positive, with shares down 7.1% to €32.98 in the past week. It was not a great result overall. Although revenues beat expectations, hitting €13b, statutory earnings missed analyst forecasts by 14%, coming in at just €0.93 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Daimler Truck Holding
Taking into account the latest results, the current consensus, from the 14 analysts covering Daimler Truck Holding, is for revenues of €53.8b in 2024. This implies a small 2.8% reduction in Daimler Truck Holding's revenue over the past 12 months. Statutory earnings per share are forecast to shrink 9.8% to €4.15 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €53.5b and earnings per share (EPS) of €4.48 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at €50.07, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Daimler Truck Holding analyst has a price target of €61.00 per share, while the most pessimistic values it at €35.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.6% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.7% per year. It's pretty clear that Daimler Truck Holding's revenues are expected to perform substantially worse 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 €50.07, 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 forecasts for Daimler Truck Holding going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Daimler Truck Holding (1 is a bit unpleasant!) that you need to be mindful 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
