Earnings Beat: Mycronic AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, Mycronic AB (publ) (STO:MYCR) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.3% to hit kr7.1b. Mycronic reported statutory earnings per share (EPS) kr17.24, which was a notable 11% above what the analysts had forecast. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mycronic

Taking into account the latest results, the most recent consensus for Mycronic from two analysts is for revenues of kr8.28b in 2025. If met, it would imply a decent 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 20% to kr20.76. Before this earnings report, the analysts had been forecasting revenues of kr7.50b and earnings per share (EPS) of kr15.79 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of kr493, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Mycronic's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Mycronic is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mycronic following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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. We have analyst estimates for Mycronic going out as far as 2027, and you can see them free on our platform here.

You can also see our analysis of Mycronic'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.