Earnings Miss: Momentum Group AB (publ) Missed EPS By 16% And Analysts Are Revising Their Forecasts

Momentum Group AB (publ) (STO:MMGR B) just released its latest quarterly report and things are not looking great. Momentum Group missed earnings this time around, with kr735m revenue coming in 2.2% below what the analysts had modelled. Statutory earnings per share (EPS) of kr0.85 also fell short of expectations by 16%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Momentum Group's three analysts are now forecasting revenues of kr3.22b in 2025. This would be a meaningful 9.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to kr4.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.20b and earnings per share (EPS) of kr4.40 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Momentum Group

There were no changes to revenue or earnings estimates or the price target of kr187, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Momentum Group at kr200 per share, while the most bearish prices it at kr175. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Momentum Group is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Momentum Group's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% annually. Even after the forecast slowdown in growth, it seems obvious that Momentum Group is also expected to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Momentum Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Momentum Group going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Momentum Group's balance sheet, and whether we think Momentum Group is carrying too much debt, for free on our platform here.

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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.