Meyer Burger Technology AG (VTX:MBTN) Analysts Are Cutting Their Estimates: Here's What You Need To Know

As you might know, Meyer Burger Technology AG (VTX:MBTN) last week released its latest half-yearly, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of CHF57m missing analyst predictions by 3.5%. Worse, the business reported a statutory loss of CHF0.02 per share, much larger than the analysts had forecast prior to the result. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Meyer Burger Technology

Taking into account the latest results, the current consensus from Meyer Burger Technology's five analysts is for revenues of CHF162.4m in 2022, which would reflect a major 107% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 37% to CHF0.025. Before this latest report, the consensus had been expecting revenues of CHF187.8m and CHF0.025 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

The consensus price target was broadly unchanged at CHF0.60, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Meyer Burger Technology, with the most bullish analyst valuing it at CHF0.85 and the most bearish at CHF0.26 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. One thing stands out from these estimates, which is that Meyer Burger Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 3x annualised growth until the end of 2022. If achieved, this would be a much better result than the 41% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like Meyer Burger Technology is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded their revenue estimates, although industry data suggests that Meyer Burger Technology's revenues are expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Meyer Burger Technology going out to 2024, 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 Meyer Burger Technology you should be aware of.

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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.