It has been a very good week for Domain Holdings Australia Limited (ASX: DHG), as its shares have jumped 12% to A $ 5.19 in the week since its last annual results. The result was broadly positive – although revenues of A $ 289 million were in line with analysts’ forecasts, Domain Holdings Australia surprised with a statutory profit of A $ 0.059 per share, slightly above expectations. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a strong change in the outlook for the company, or if it is like habit. We have put together the most recent statutory forecasts to see if analysts have changed their earnings models as a result of these results.
See our latest review for Domain Holdings Australia
Based on the latest results, the most recent consensus for Domain Holdings Australia of eleven analysts is A $ 330.2 million in revenue in 2022 which, if achieved, would represent a notable 14% increase in sales. in the past 12 months. Earnings per share are expected to jump 41% to AU $ 0.083. Prior to this earnings report, analysts were forecasting revenue of AU $ 331.9 million and earnings per share (EPS) of AU $ 0.082 in 2022. Consensus analysts do not appear to have seen anything in these findings. or that would have changed their perspective on the business, given that there was no major change in their estimates.
Analysts reconfirmed their price target of AU $ 5.14, showing that activity is going well and according to expectations. Sticking to a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. Currently, the most bullish analyst values Domain Holdings Australia at AU $ 5.70 per share, while the most bearish price at AU $ 3.80. These price targets show that analysts have different views on the company, but the estimates don’t vary enough to suggest that some are betting on wild success or complete failure.
Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. For example, we noticed that Domain Holdings Australia’s growth rate is expected to accelerate significantly, with revenues expected to grow 14% by the end of 2022 on an annualized basis. This is well above its historic decline of 7.6% per year over the past three years. Compare that to analysts’ estimates for the industry as a whole, which suggest the industry’s revenue (overall) is expected to grow 6.5% per year. So it looks like Domain Holdings Australia is set to grow faster than its competitors, at least for a while.
The bottom line
The most important thing to remember is that there has been no major change in sentiment, with analysts once again confirming that the company is performing according to their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue figures, suggesting that sales are moving as expected – and our data suggests that revenue is expected to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
Continuing this reflection, we believe that the long-term prospects of the company are much more relevant than the results of next year. We have forecasts for Domain Holdings Australia through 2024, and you can view them for free on our platform here.
You can also view our analysis of Domain Holdings Australia’s balance sheet and find out if we believe Domain Holdings Australia is too much in debt, for free on our platform here.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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