Earnings Miss: Marimekko Oyj Missed EPS By 9.7% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Marimekko Oyj (HEL:MEKKO) released its third-quarter result to the market. The early response was not positive, with shares down 6.8% to €12.14 in the past week. Revenues of €47m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.21, missing estimates by 9.7%. 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.

View our latest analysis for Marimekko Oyj

Taking into account the latest results, the current consensus from Marimekko Oyj's five analysts is for revenues of €194.3m in 2025. This would reflect a decent 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 18% to €0.67. In the lead-up to this report, the analysts had been modelling revenues of €194.7m and earnings per share (EPS) of €0.69 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at €12.85, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Marimekko Oyj analyst has a price target of €13.00 per share, while the most pessimistic values it at €12.40. This is a very narrow spread of estimates, implying either that Marimekko Oyj is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 2025 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. Compare this to the 96 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.5% per year. Factoring in the forecast slowdown in growth, it looks like Marimekko Oyj is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €12.85, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

You can also see our analysis of Marimekko Oyj's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.