Masterflex SE (ETR:MZX) Just Released Its Half-Year Earnings: Here's What Analysts Think

Shareholders might have noticed that Masterflex SE (ETR:MZX) filed its half-year result this time last week. The early response was not positive, with shares down 5.3% to €9.30 in the past week. It was a credible result overall, with revenues of €53m and statutory earnings per share of €0.81 both in line with analyst estimates, showing that Masterflex is executing in line with expectations. 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.

Check out our latest analysis for Masterflex

Taking into account the latest results, Masterflex's twin analysts currently expect revenues in 2023 to be €104.8m, approximately in line with the last 12 months. Per-share earnings are expected to increase 4.9% to €0.81. Before this earnings report, the analysts had been forecasting revenues of €109.1m and earnings per share (EPS) of €0.90 in 2023. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The analysts made no major changes to their price target of €14.85, suggesting the downgrades are not expected to have a long-term impact on Masterflex's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Masterflex's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Masterflex's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Masterflex is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at €14.85, with the latest estimates not enough to have an impact on their price targets.

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. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You still need to take note of risks, for example - Masterflex has 2 warning signs we think 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.