As you might know, Dynacor Group Inc. (TSE:DNG) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of US$101m arriving 9.2% ahead of forecasts. Statutory earnings per share (EPS) were US$0.12, 9.1% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Dynacor Group’s two analysts are now forecasting revenues of US$463.6m in 2026. This would be a substantial 39% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.6% to US$0.41. In the lead-up to this report, the analysts had been modelling revenues of US$486.0m and earnings per share (EPS) of US$0.40 in 2026. So it’s pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company’s earnings power.
Check out our latest analysis for Dynacor Group
The consensus has made no major changes to the price target of CA$7.74, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dynacor Group’s past performance and to peers in the same industry. It’s clear from the latest estimates that Dynacor Group’s rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 19% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Dynacor Group is expected to grow much faster than its industry.
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dynacor Group’s earnings potential next year. They also downgraded Dynacor Group’s 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. The consensus price target held steady at CA$7.74, with the latest estimates not enough to have an impact on their price targets.