€21.43: That's What Analysts Think Mister Spex SE (FRA:MRX) Is Worth After Its Latest Results

Last week saw the newest annual earnings release from Mister Spex SE (FRA:MRX), an important milestone in the company's journey to build a stronger business. The results don't look great, especially considering that statutory losses grew 61% to€1.11 per share. Revenues of €201m did beat expectations by 3.9%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Mister Spex

Taking into account the latest results, the consensus forecast from Mister Spex's five analysts is for revenues of €232.9m in 2022, which would reflect a meaningful 16% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 42% to €0.56. Yet prior to the latest earnings, the analysts had been forecasting revenues of €237.5m and losses of €0.44 per share in 2022. While this year's revenue estimates held steady, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 8.1% to €21.43per share, with the analysts clearly concerned by ballooning losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Mister Spex analyst has a price target of €30.00 per share, while the most pessimistic values it at €12.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 15% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.2% per year. So although Mister Spex is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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 Mister Spex. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mister Spex going out to 2024, and you can see them free on our platform here..

Even so, be aware that Mister Spex is showing 2 warning signs in our investment analysis , you should know about...

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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.