Musti Group Oyj Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week saw the newest second-quarter earnings release from Musti Group Oyj (HEL:MUSTI), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at €0.11, some 21% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €82m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Musti Group Oyj after the latest results.

See our latest analysis for Musti Group Oyj

Taking into account the latest results, the consensus forecast from Musti Group Oyj's four analysts is for revenues of €340.5m in 2021, which would reflect a meaningful 9.0% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 21% to €0.80. In the lead-up to this report, the analysts had been modelling revenues of €334.8m and earnings per share (EPS) of €0.81 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €29.08. 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 Musti Group Oyj analyst has a price target of €33.80 per share, while the most pessimistic values it at €21.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Musti Group Oyj shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 19% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.2% per year. So although Musti Group Oyj 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 take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €29.08, with the latest estimates not enough to have an impact on their price targets.

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 Simply Wall St, we have a full range of analyst estimates for Musti Group Oyj going out to 2024, and you can see them free on our platform here..

You can also see whether Musti Group Oyj is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

When trading stocks or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.