Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros (BME:LDA) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
Last week, you might have seen that Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros (BME:LDA) released its third-quarter result to the market. The early response was not positive, with shares down 2.8% to €1.19 in the past week. It was an okay report, and revenues came in at €303m, approximately in line with analyst estimates leading up to the results announcement. The analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Línea Directa Aseguradora Compañía de Seguros y Reaseguros after the latest results.
Taking into account the latest results, the consensus forecast from Línea Directa Aseguradora Compañía de Seguros y Reaseguros' seven analysts is for revenues of €1.28b in 2027. This reflects a modest 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.3% to €0.11. Before this earnings report, the analysts had been forecasting revenues of €1.28b and earnings per share (EPS) of €0.11 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Línea Directa Aseguradora Compañía de Seguros y Reaseguros
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €1.46. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Línea Directa Aseguradora Compañía de Seguros y Reaseguros at €1.60 per share, while the most bearish prices it at €1.15. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Línea Directa Aseguradora Compañía de Seguros y Reaseguros' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Línea Directa Aseguradora Compañía de Seguros y Reaseguros' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 5.5% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.8% per year. Even after the forecast slowdown in growth, it seems obvious that Línea Directa Aseguradora Compañía de Seguros y Reaseguros is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Línea Directa Aseguradora Compañía de Seguros y Reaseguros going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Línea Directa Aseguradora Compañía de Seguros y Reaseguros you should be aware of.
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