Earnings Update: Here's Why Analysts Just Lifted Their Momentum Group AB (publ) (STO:MMGR B) Price Target To kr183

Last week saw the newest third-quarter earnings release from Momentum Group AB (publ) (STO:MMGR B), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of kr694m were in line with what the analysts predicted, Momentum Group surprised by delivering a statutory profit of kr1.05 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Momentum Group

Following the latest results, Momentum Group's two analysts are now forecasting revenues of kr3.11b in 2025. This would be a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 22% to kr4.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.11b and earnings per share (EPS) of kr4.65 in 2025. 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 consensus price target rose 30% to kr183despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Momentum Group's earnings by assigning a price premium.

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 9.0% annualised growth rate until the end of 2025 being well below the historical 24% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% per year. So it's pretty clear that, while Momentum Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Momentum Group you should be aware of.

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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.