Yahoo Finance Analyst Estimates: Here's What Brokers Think Of DATA Communications Management Corp. (TSE:DCM) After Its Full-Year Report
Shareholders might have noticed that DATA Communications Management Corp. (TSE:DCM) filed its annual result this time last week. The early response was not positive, with shares down 5.2% to CA$3.26 in the past week. Revenues were in line with expectations, at CA$448m, while statutory losses ballooned to CA$0.31 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for DATA Communications Management
Following the latest results, DATA Communications Management's dual analysts are now forecasting revenues of CA$552.6m in 2024. This would be a substantial 23% improvement in revenue compared to the last 12 months. DATA Communications Management is also expected to turn profitable, with statutory earnings of CA$0.34 per share. Before this earnings report, the analysts had been forecasting revenues of CA$553.0m and earnings per share (EPS) of CA$0.38 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
It might be a surprise to learn that the consensus price target was broadly unchanged at CA$6.70, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
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 DATA Communications Management's growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect DATA Communications Management to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DATA Communications Management. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CA$6.70, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on DATA Communications Management. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for DATA Communications Management you should be aware 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.
