Stock Analysis

Munters Group AB (publ) Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next

OM:MTRS
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The analysts might have been a bit too bullish on Munters Group AB (publ) (STO:MTRS), given that the company fell short of expectations when it released its third-quarter results last week. Results showed a clear earnings miss, with kr3.8b revenue coming in 5.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of kr1.44 missed the mark badly, arriving some 24% below what was expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Munters Group

earnings-and-revenue-growth
OM:MTRS Earnings and Revenue Growth October 25th 2024

Taking into account the latest results, the most recent consensus for Munters Group from five analysts is for revenues of kr17.0b in 2025. If met, it would imply a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 74% to kr8.26. Before this earnings report, the analysts had been forecasting revenues of kr17.5b and earnings per share (EPS) of kr8.83 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.3% to kr227. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Munters Group at kr260 per share, while the most bearish prices it at kr205. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Munters Group's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.2% per year. So it's pretty clear that, while Munters Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. They also downgraded Munters Group's revenue estimates, but industry data suggests that it is expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Munters Group going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Munters Group .

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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.