MotorK plc (AMS:MTRK) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

It's been a good week for MotorK plc (AMS:MTRK) shareholders, because the company has just released its latest annual results, and the shares gained 2.5% to €2.47. Revenues were €39m, with MotorK reporting some 8.3% below analyst expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for MotorK

Following the latest results, MotorK's three analysts are now forecasting revenues of €39.5m in 2023. This would be an okay 2.5% improvement in sales compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €52.9m and earnings per share (EPS) of €0.09 in 2023. Overall, while there's been a large cut to revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that after the latest results, the market believes revenue is more important.

The average price target fell 16% to €2.43, withthe analysts clearly having become less optimistic about MotorK'sprospects following its latest earnings. 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 MotorK at €2.70 per share, while the most bearish prices it at €2.15. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that MotorK's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2023 being well below the historical 17% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that MotorK is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for MotorK next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

At least one of MotorK's three analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Even so, be aware that MotorK is showing 1 warning sign in our investment analysis , you should know about...

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.