Yahoo Finance Delivery Hero SE (ETR:DHER) Just Released Its Yearly Earnings: Here's What Analysts Think
Last week, you might have seen that Delivery Hero SE (ETR:DHER) released its annual result to the market. The early response was not positive, with shares down 7.9% to €25.86 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at €9.9b, statutory losses exploded to €8.57 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Delivery Hero
Taking into account the latest results, the consensus forecast from Delivery Hero's 16 analysts is for revenues of €11.6b in 2024. This reflects a decent 17% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 79% to €1.73. Yet prior to the latest earnings, the analysts had been forecasting revenues of €11.6b and losses of €1.63 per share in 2024. So it's pretty clear consensus is mixed on Delivery Hero after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.
The consensus price target held steady at €45.85, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Delivery Hero at €75.00 per share, while the most bearish prices it at €20.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of 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. We would highlight that Delivery Hero's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2024 being well below the historical 46% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.0% per year. Even after the forecast slowdown in growth, it seems obvious that Delivery Hero is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €45.85, 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 Delivery Hero. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Delivery Hero going out to 2026, and you can see them free on our platform here..
Even so, be aware that Delivery Hero is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
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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.
