Maisons du Monde S.A. (EPA:MDM) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Maisons du Monde S.A. (EPA:MDM) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of €1.0b missing analyst predictions by 2.7%. Worse, the business reported a statutory loss of €2.99 per share, much larger than the analysts had forecast prior to the result. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Maisons du Monde

Taking into account the latest results, the current consensus, from the three analysts covering Maisons du Monde, is for revenues of €992.7m in 2025. This implies a discernible 3.6% reduction in Maisons du Monde's revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 76% to €0.72. Yet prior to the latest earnings, the analysts had been forecasting revenues of €1.03b and losses of €0.43 per share in 2025. So it's pretty clear the analysts have mixed opinions on Maisons du Monde after this update; revenues were downgraded and per-share losses expected to increase.

The average price target was broadly unchanged at €4.53, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. 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. There are some variant perceptions on Maisons du Monde, with the most bullish analyst valuing it at €7.00 and the most bearish at €3.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past five years, revenues have declined around 2.6% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 3.6% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.2% per year. So while a broad number of companies are forecast to grow, unfortunately Maisons du Monde is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at €4.53, 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 Maisons du Monde going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Maisons du Monde's balance sheet, and whether we think Maisons du Monde is carrying too much debt, for free 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.