Investors in Dalrymple Bay Infrastructure Limited (ASX:DBI) had a good week, as its shares rose 4.9% to close at AU$3.82 following the release of its full-year results. Results were mixed, with revenues of AU$767m exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were AU$0.16 per share, -11% below whatthe analysts had 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Dalrymple Bay Infrastructure

Taking into account the latest results, the current consensus, from the five analysts covering Dalrymple Bay Infrastructure, is for revenues of AU$735.6m in 2025. This implies a discernible 4.0% reduction in Dalrymple Bay Infrastructure's revenue over the past 12 months. Statutory earnings per share are predicted to surge 23% to AU$0.20. Before this earnings report, the analysts had been forecasting revenues of AU$701.8m and earnings per share (EPS) of AU$0.19 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to AU$4.08per share. 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. The most optimistic Dalrymple Bay Infrastructure analyst has a price target of AU$4.30 per share, while the most pessimistic values it at AU$3.90. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.0% by the end of 2025. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Dalrymple Bay Infrastructure is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dalrymple Bay Infrastructure following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Dalrymple Bay Infrastructure analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Dalrymple Bay Infrastructure that you need to take into consideration.

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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.