MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

A week ago, MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BUSE:MOL) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.5% to hit Ft8.9t. MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság reported statutory earnings per share (EPS) Ft714, which was a notable 14% above what the analysts had forecast. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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

After the latest results, the consensus from MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's six analysts is for revenues of Ft8.48t in 2024, which would reflect a discernible 4.8% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to nosedive 26% to Ft623 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of Ft8.45t and earnings per share (EPS) of Ft621 in 2024. 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.

The analysts reconfirmed their price target of Ft3,379, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság analyst has a price target of Ft3,993 per share, while the most pessimistic values it at Ft2,449. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.8% by the end of 2024. This indicates a significant reduction from annual growth of 17% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.7% annually for the foreseeable future. The forecasts do look bearish for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság, since they're expecting it to shrink faster than the 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. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the current trajectory in the near term, even though it is expected to trail the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (1 doesn't sit too well with us!) that you need to take into consideration.

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

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.