Marimekko Oyj (HEL:MEKKO) Yearly Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Marimekko Oyj (HEL:MEKKO) filed its annual result this time last week. The early response was not positive, with shares down 8.2% to €12.16 in the past week. It was a credible result overall, with revenues of €174m and statutory earnings per share of €0.58 both in line with analyst estimates, showing that Marimekko Oyj is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Marimekko Oyj after the latest results.

Check out our latest analysis for Marimekko Oyj

Taking into account the latest results, the most recent consensus for Marimekko Oyj from five analysts is for revenues of €181.5m in 2024. If met, it would imply a satisfactory 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.8% to €0.63. Before this earnings report, the analysts had been forecasting revenues of €190.5m and earnings per share (EPS) of €0.67 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of €12.75, suggesting the downgrades are not expected to have a long-term impact on Marimekko Oyj's 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. There are some variant perceptions on Marimekko Oyj, with the most bullish analyst valuing it at €15.00 and the most bearish at €11.50 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Marimekko Oyj's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2024 being well below the historical 9.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% per year. 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 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €12.75, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Marimekko Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Marimekko Oyj analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.