Earnings Miss: Marimekko Oyj Missed EPS By 9.4% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Marimekko Oyj (HEL:MEKKO) filed its second-quarter result this time last week. The early response was not positive, with shares down 6.7% to €12.26 in the past week. Revenues of €44m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.12, missing estimates by 9.4%. 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. 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 Marimekko Oyj

Following last week's earnings report, Marimekko Oyj's five analysts are forecasting 2024 revenues to be €180.9m, approximately in line with the last 12 months. Statutory per share are forecast to be €0.61, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €182.0m and earnings per share (EPS) of €0.64 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €12.83, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Marimekko Oyj analyst has a price target of €13.00 per share, while the most pessimistic values it at €12.30. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Marimekko Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Marimekko Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Marimekko Oyj. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Marimekko Oyj's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €12.83, with the latest estimates not enough to have an impact on their price targets.

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 Marimekko Oyj going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Marimekko Oyj Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.