MEMSCAP, S.A. (EPA:MEMS) Just Reported, And Analysts Assigned A €8.30 Price Target

It's been a sad week for MEMSCAP, S.A. (EPA:MEMS), who've watched their investment drop 14% to €3.86 in the week since the company reported its annual result. Revenues were €13m, with MEMSCAP reporting some 4.8% below analyst expectations. The analyst 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 estimate suggests is in store for next year.

View our latest analysis for MEMSCAP

Taking into account the latest results, the most recent consensus for MEMSCAP from sole analyst is for revenues of €14.7m in 2025. If met, it would imply a decent 16% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of €15.0m and earnings per share (EPS) of €0.33 in 2025. Overall, while the analyst has reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

The average price target fell 19% to €8.30, withthe analyst clearly having become less optimistic about MEMSCAP'sprospects following its latest earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that MEMSCAP's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MEMSCAP is expected to grow much faster than its industry.

The Bottom Line

The clear take away from these updates is that the analyst made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of MEMSCAP's future valuation.

We have estimates for MEMSCAP from one covering analyst, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for MEMSCAP (1 shouldn't be ignored!) that you should be aware of.

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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.