Mycronic AB (publ) Just Beat Revenue Estimates By 9.4%

Mycronic AB (publ) (STO:MYCR) just released its quarterly report and things are looking bullish. The company beat expectations with revenues of kr1.7b arriving 9.4% ahead of forecasts. Statutory earnings per share (EPS) were kr1.11, 6.8% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Mycronic's three analysts are forecasting 2026 revenues to be kr8.03b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 3.4% to kr8.62 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr7.77b and earnings per share (EPS) of kr8.29 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Mycronic

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr217, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Mycronic at kr251 per share, while the most bearish prices it at kr161. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Mycronic's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2026 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Mycronic is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mycronic's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at kr217, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Mycronic. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Mycronic analysts - going out to 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.