Analysts Are Updating Their Mycronic AB (publ) (STO:MYCR) Estimates After Its Second-Quarter Results

Shareholders might have noticed that Mycronic AB (publ) (STO:MYCR) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.0% to kr415 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at kr1.5b, statutory earnings were in line with expectations, at kr10.22 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Mycronic

Following the latest results, Mycronic's dual analysts are now forecasting revenues of kr6.64b in 2024. This would be a reasonable 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.8% to kr16.15. Before this earnings report, the analysts had been forecasting revenues of kr6.72b and earnings per share (EPS) of kr16.34 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr450.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mycronic's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Mycronic's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mycronic.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mycronic's revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Mycronic going out as far as 2026, and you can see them free on our platform here.

We also provide an overview of the Mycronic Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.

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