My Food Bag Group Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, My Food Bag Group Limited (NZSE:MFB) recently reported its full-year numbers. It was not a great result overall. While revenues of NZ$176m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit NZ$0.03 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on My Food Bag Group after the latest results.

Check out our latest analysis for My Food Bag Group

Following the latest results, My Food Bag Group's two analysts are now forecasting revenues of NZ$181.0m in 2024. This would be a satisfactory 3.0% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 21% to NZ$0.039. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$182.2m and earnings per share (EPS) of NZ$0.056 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 36% to NZ$0.45, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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. It's pretty clear that there is an expectation that My Food Bag Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 4.6% over the past five years. Compare this to the 9 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.5% per year. So it's pretty clear that, while My Food Bag Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with My Food Bag Group (at least 2 which are concerning) , and understanding them should be part of your investment process.

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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.