Mutares SE & Co. KGaA Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

As you might know, Mutares SE & Co. KGaA (ETR:MUX) recently reported its first-quarter numbers. Results look mixed - while revenue fell marginally short of analyst estimates at €1.3b, statutory earnings were in line with expectations, at €18.41 per share. 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 Mutares SE KGaA after the latest results.

See our latest analysis for Mutares SE KGaA

Following the latest results, Mutares SE KGaA's four analysts are now forecasting revenues of €5.93b in 2024. This would be a substantial 23% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 45% to €0.92. Before this latest report, the consensus had been expecting revenues of €5.93b and €0.65 per share in losses. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Although the analysts are now forecasting higher losses, the average price target rose 9.8% to 40.7, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. 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. There are some variant perceptions on Mutares SE KGaA, with the most bullish analyst valuing it at €50.00 and the most bearish at €30.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mutares SE KGaA's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 34% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.4% per year. So it's pretty clear that Mutares SE KGaA is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Mutares SE KGaA. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Mutares SE KGaA analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Mutares SE KGaA (2 make us uncomfortable) 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.