Here's What Analysts Are Forecasting For Modern Times Group MTG AB (STO:MTG B) After Its First-Quarter Results

Investors in Modern Times Group MTG AB (STO:MTG B) had a good week, as its shares rose 4.0% to close at kr116 following the release of its first-quarter results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the most recent consensus for Modern Times Group MTG from four analysts is for revenues of kr11.9b in 2025. If met, it would imply a major 67% increase on its revenue over the past 12 months. Modern Times Group MTG is also expected to turn profitable, with statutory earnings of kr4.46 per share. Before this earnings report, the analysts had been forecasting revenues of kr12.0b and earnings per share (EPS) of kr8.72 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

Check out our latest analysis for Modern Times Group MTG

It might be a surprise to learn that the consensus price target was broadly unchanged at kr142, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Modern Times Group MTG, with the most bullish analyst valuing it at kr155 and the most bearish at kr130 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Modern Times Group MTG is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Modern Times Group MTG's past performance and to peers in the same industry. It's clear from the latest estimates that Modern Times Group MTG's rate of growth is expected to accelerate meaningfully, with the forecast 98% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Modern Times Group MTG is expected to grow much faster than its 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. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Modern Times Group MTG going out to 2027, and you can see them free on our platform here..

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.