Stock Analysis

The M.T.I Wireless Edge Ltd. (LON:MWE) Yearly Results Are Out And Analysts Have Published New Forecasts

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It's been a good week for M.T.I Wireless Edge Ltd. (LON:MWE) shareholders, because the company has just released its latest full-year results, and the shares gained 5.1% to UK£0.52. M.T.I Wireless Edge reported US$46m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.042 beat expectations, being 2.7% higher than what the analysts expected. 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 M.T.I Wireless Edge

AIM:MWE Earnings and Revenue Growth March 16th 2023

After the latest results, the two analysts covering M.T.I Wireless Edge are now predicting revenues of US$48.9m in 2023. If met, this would reflect a reasonable 5.8% improvement in sales compared to the last 12 months. Statutory per share are forecast to be US$0.043, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$48.9m and earnings per share (EPS) of US$0.043 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of UK£0.89, suggesting that the company has met expectations in its recent result.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 5.8% growth on an annualised basis. That is in line with its 5.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.3% annually. So although M.T.I Wireless Edge is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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 UK£0.89, 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. We have analyst estimates for M.T.I Wireless Edge going out as far as 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for M.T.I Wireless Edge that you need to be mindful of.

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