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Last week, you might have seen that Dye & Durham Limited (TSE:DND) released its second-quarter result to the market. The early response was not positive, with shares down 8.5% to CA$13.27 in the past week. The results look positive overall; while revenues of CA$121m were in line with analyst predictions, statutory losses were 3.2% smaller than expected, with Dye & Durham losing CA$0.27 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Dye & Durham
Following the latest results, Dye & Durham's six analysts are now forecasting revenues of CA$486.3m in 2025. This would be a modest 3.9% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 69% to CA$0.71. Before this earnings announcement, the analysts had been modelling revenues of CA$491.6m and losses of CA$0.54 per share in 2025. So it's pretty clear the analysts have mixed opinions on Dye & Durham even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.
The consensus price target fell 14% to CA$21.44per share, with the analysts clearly concerned by ballooning losses. 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 Dye & Durham at CA$25.00 per share, while the most bearish prices it at CA$18.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dye & Durham shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Dye & Durham's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.0% growth on an annualised basis. This is compared to a historical growth rate of 28% 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 15% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dye & Durham.