The German food ordering company Delivery Hero SE (DE:DHER) share price nosedived yesterday after the company missed average analysts’ expectations in its first-half earnings for 2023. Despite the company posting higher revenues and reducing its losses in the first half, the numbers failed to match up with analysts’ estimates.
The shareholders expressed dissatisfaction with the figures, leading to a 10.3% decline in the Delivery Hero share price following the earnings announcement yesterday. The stock hit its lowest point since April, resulting in a YTD loss of approximately 27%.
Delivery Hero is a German online food service company with a presence in over 50 countries across the globe. The company has brands like Foodpanda, Talabat, Hunger Station, etc. in its portfolio.
Let’s dig deeper into the numbers.
H1 2023 Earnings
The company posted 27% growth in its revenues to €4.84 billion as compared to H1 2022 numbers. This was mainly driven by order growth, which surpassed pre-pandemic levels but fell short of the peak achieved during lockdowns. The net loss for the period was €823.3 million, an improvement from the loss of €1.495 billion in the previous year. The figures fell slightly short of the average analyst projections, who were hoping for a smaller loss.
The total gross merchandise value (GMV) saw 8% year-over-year growth, exceeding the initial forecasts of a 4% rise. Furthermore, the GMV for the group, excluding Asia, exhibited a double-digit surge of 18% YoY in the second quarter. The projected GMV for the entire year is expected to fall within the range of 5% to 7%.
Moving forward into 2023, the company maintained its earnings guidance for the full year. It also expects to achieve break-even in adjusted segment EBITDA and remain positive throughout the year, marking a significant milestone in the group’s journey.
Is Delivery Hero Stock a Buy?
Yesterday, post-results, DHER stock received two Buy ratings from analysts. Andrew Ross from Barclays and Wassachon Udomsilpa from RBC Capital reiterated their Buy ratings on the stock, predicting huge upsides of 100% and 170% in the share price, respectively.
On TipRanks, DHER stock has garnered a Strong Buy rating supported by a total of 13 recommendations, out of which 11 are classified as Buy. The Delivery Hero share price forecast is €59.92, which implies a growth of 90% from the current trading level.
