One thing we could say about the covering analyst on DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the consensus from DATA MODUL Produktion und Vertrieb von elektronischen Systemen's solo analyst is for revenues of €241m in 2024, which would reflect a noticeable 6.9% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to drop 18% to €2.56 in the same period. Before this latest update, the analyst had been forecasting revenues of €272m and earnings per share (EPS) of €3.20 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for DATA MODUL Produktion und Vertrieb von elektronischen Systemen

The consensus price target fell 14% to €60.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 6.9% by the end of 2024. This indicates a significant reduction from annual growth of 8.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that DATA MODUL Produktion und Vertrieb von elektronischen Systemen'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 analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower 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.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for DATA MODUL Produktion und Vertrieb von elektronischen Systemen going out as far as 2026, and you can see them free on our platform here.