Modern Times Group MTG AB Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

It's been a pretty great week for Modern Times Group MTG AB (STO:MTG B) shareholders, with its shares surging 14% to kr118 in the week since its latest yearly results. Revenues came in at kr6.0b, in line with estimates, while Modern Times Group MTG reported a statutory loss of kr1.74 per share, well short of prior analyst forecasts for a profit. 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.

Check out our latest analysis for Modern Times Group MTG

Taking into account the latest results, the current consensus from Modern Times Group MTG's five analysts is for revenues of kr12.2b in 2025. This would reflect a substantial 104% increase on its revenue over the past 12 months. Modern Times Group MTG is also expected to turn profitable, with statutory earnings of kr9.23 per share. In the lead-up to this report, the analysts had been modelling revenues of kr12.3b and earnings per share (EPS) of kr9.38 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.

The consensus price target rose 5.1% to kr144despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Modern Times Group MTG's earnings by assigning a price premium. 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. There are some variant perceptions on Modern Times Group MTG, with the most bullish analyst valuing it at kr155 and the most bearish at kr115 per share. This is a very narrow spread of estimates, implying either that Modern Times Group MTG is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 clear from the latest estimates that Modern Times Group MTG's rate of growth is expected to accelerate meaningfully, with the forecast 104% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% 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 9.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Modern Times Group MTG 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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

You can also see our analysis of Modern Times Group MTG's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.