Dicker Data Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Dicker Data Limited (ASX:DDR) defied analyst predictions to release its full-year results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 4.4% to hit AU$2.0b. Statutory earnings per share (EPS) came in at AU$0.34, some 7.4% above whatthe analyst had expected. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Dicker Data
After the latest results, the sole analyst covering Dicker Data are now predicting revenues of AU$2.16b in 2021. If met, this would reflect a meaningful 8.2% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to step up 14% to AU$0.39. In the lead-up to this report, the analyst had been modelling revenues of AU$2.07b and earnings per share (EPS) of AU$0.35 in 2021. So it seems there's been a definite increase in optimism about Dicker Data's future following the latest results, with a nice increase in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analyst has lifted their price target 13% to AU$13.05per share.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Dicker Data's revenue growth will slow down substantially, with revenues next year expected to grow 8.2%, compared to a historical growth rate of 13% 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 25% per year. Factoring in the forecast slowdown in growth, it seems obvious that Dicker Data is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dicker Data following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Dicker Data going out as far as 2023, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 4 warning signs for Dicker Data you should be aware of, and 1 of them is significant.
This article by Simply Wall St is general in nature. 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.
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