Analysts Are Updating Their Meltwater Holding B.V. (OB:MWTR) Estimates After Its First-Quarter Results

It's been a good week for Meltwater Holding B.V. (OB:MWTR) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to kr51.62. It was an okay result overall, with revenues coming in at US$94m, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Meltwater Holding B.V

Taking into account the latest results, the current consensus from Meltwater Holding B.V's three analysts is for revenues of US$396.7m in 2021, which would reflect a meaningful 15% increase on its sales over the past 12 months. Meltwater Holding B.V is also expected to turn profitable, with statutory earnings of US$0.0085 per share. Before this earnings report, the analysts had been forecasting revenues of US$396.5m and earnings per share (EPS) of US$0.0071 in 2021. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at kr74.67, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Meltwater Holding B.V, with the most bullish analyst valuing it at kr77.00 and the most bearish at kr71.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Meltwater Holding B.V is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Meltwater Holding B.V's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 9.5% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Meltwater Holding B.V is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Meltwater Holding B.V's earnings potential next year. 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 US$74.67, 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 estimates - from multiple Meltwater Holding B.V analysts - going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Meltwater Holding B.V .

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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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