Analysts Have Lowered Expectations For M1 Kliniken AG (ETR:M12) After Its Latest Results

As you might know, M1 Kliniken AG (ETR:M12) recently reported its yearly numbers. M1 Kliniken missed revenue estimates by 4.5%, with sales of €315m, although statutory earnings per share (EPS) of €0.45 beat expectations, coming in 4.7% ahead of analyst estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for M1 Kliniken

Taking into account the latest results, the two analysts covering M1 Kliniken provided consensus estimates of €290.4m revenue in 2022, which would reflect a noticeable 7.7% decline on its sales over the past 12 months. Statutory earnings per share are expected to tumble 31% to €0.33 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €358.4m and earnings per share (EPS) of €0.43 in 2022. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

The consensus price target fell 7.1% to €13.00, with the weaker earnings outlook clearly leading valuation estimates.

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. We would highlight that sales are expected to reverse, with a forecast 7.7% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 46% 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 5.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - M1 Kliniken is expected to lag the wider industry.

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 revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of M1 Kliniken's future valuation.

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 2024, which can be seen for free on our platform here.

You still need to take note of risks, for example - M1 Kliniken has 1 warning sign 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.