Dine Brands Global, Inc. Just Recorded A 22% EPS Beat: Here's What Analysts Are Forecasting Next
Investors in Dine Brands Global, Inc. (NYSE:DIN) had a good week, as its shares rose 7.4% to close at US$49.06 following the release of its yearly results. It looks like a credible result overall - although revenues of US$831m were what the analysts expected, Dine Brands Global surprised by delivering a (statutory) profit of US$6.22 per share, an impressive 22% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Dine Brands Global
Taking into account the latest results, Dine Brands Global's eight analysts currently expect revenues in 2024 to be US$844.0m, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 8.6% to US$5.69 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$848.2m and earnings per share (EPS) of US$5.68 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$58.63, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Dine Brands Global analyst has a price target of US$74.00 per share, while the most pessimistic values it at US$48.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 can infer from the latest estimates that forecasts expect a continuation of Dine Brands Global'shistorical trends, as the 1.6% annualised revenue growth to the end of 2024 is roughly in line with the 1.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.5% annually. So although Dine Brands Global is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dine Brands Global's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$58.63, with the latest estimates not enough to have an impact on their price targets.
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 Dine Brands Global going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Dine Brands Global (2 are a bit unpleasant!) that we have uncovered.
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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.
