Dada Nexus Limited (NASDAQ:DADA) Yearly Results: Here's What Analysts Are Forecasting For This Year
As you might know, Dada Nexus Limited (NASDAQ:DADA) last week released its latest annual, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at CN¥11b, but statutory earnings fell catastrophically short, with a loss of CN¥7.52 some 183% larger than what the analysts had predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Dada Nexus
Taking into account the latest results, the consensus forecast from Dada Nexus' nine analysts is for revenues of CN¥11.2b in 2024. This reflects a satisfactory 6.7% improvement in revenue compared to the last 12 months. Dada Nexus is also expected to turn profitable, with statutory earnings of CN¥1.34 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥13.3b and earnings per share (EPS) of CN¥0.90 in 2024. So there's been quite a change-up of views after the latest results, with the analysts making a serious cut to their revenue forecasts while also granting a great increase in to the earnings per share numbers.
The consensus has made no major changes to the price target of US$4.51, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Dada Nexus, with the most bullish analyst valuing it at US$9.38 and the most bearish at US$1.73 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's pretty clear that there is an expectation that Dada Nexus' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% annually. Even after the forecast slowdown in growth, it seems obvious that Dada Nexus is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dada Nexus following these results. They also downgraded Dada Nexus' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Dada Nexus going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Dada Nexus (1 makes us a bit uncomfortable!) that 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.
