MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Last week, you might have seen that MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BUSE:MOL) released its full-year result to the market. The early response was not positive, with shares down 6.1% to Ft2,150 in the past week. Revenues fell 5.2% short of expectations, at Ft4.0t. Earnings correspondingly dipped, with MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság reporting a statutory loss of Ft22.00 per share, whereas the analysts had previously modelled a profit in this period. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság

Taking into account the latest results, the consensus forecast from MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's ten analysts is for revenues of Ft4.84t in 2021, which would reflect a substantial 21% improvement in sales compared to the last 12 months. MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság is also expected to turn profitable, with statutory earnings of Ft243 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of Ft4.92t and earnings per share (EPS) of Ft283 in 2021. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at Ft2,360, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság at Ft2,700 per share, while the most bearish prices it at Ft1,850. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's past performance and to peers in the same industry. It's clear from the latest estimates that MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's rate of growth is expected to accelerate meaningfully, with the forecast 21% revenue growth noticeably faster than its historical growth of 6.4%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.8% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at Ft2,360, 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. We have forecasts for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság .

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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.
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