De'Longhi S.p.A. (BIT:DLG) Released Earnings Last Week And Analysts Lifted Their Price Target To €51.92
It's been a good week for De'Longhi S.p.A. (BIT:DLG) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.6% to €47.40. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.2%to hit €945m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for De'Longhi from ten analysts is for revenues of €4.26b in 2027. If met, it would imply a satisfactory 7.9% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 18% to €2.82. In the lead-up to this report, the analysts had been modelling revenues of €4.25b and earnings per share (EPS) of €2.71 in 2027. So the consensus seems to have become somewhat more optimistic on De'Longhi's earnings potential following these results.
View our latest analysis for De'Longhi
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.2% to €51.92. 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. There are some variant perceptions on De'Longhi, with the most bullish analyst valuing it at €57.20 and the most bearish at €43.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting De'Longhi is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting De'Longhi's growth to accelerate, with the forecast 6.3% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that De'Longhi is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around De'Longhi's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on De'Longhi. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple De'Longhi analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for De'Longhi that you need to take into consideration.
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