Analysts Have Made A Financial Statement On momo.com Inc.'s (TWSE:8454) First-Quarter Report

Shareholders might have noticed that momo.com Inc. (TWSE:8454) filed its first-quarter result this time last week. The early response was not positive, with shares down 3.1% to NT$429 in the past week. momo.com reported in line with analyst predictions, delivering revenues of NT$27b and statutory earnings per share of NT$3.78, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for momo.com

After the latest results, the eight analysts covering momo.com are now predicting revenues of NT$119.0b in 2024. If met, this would reflect a credible 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to NT$16.07. Before this earnings report, the analysts had been forecasting revenues of NT$119.8b and earnings per share (EPS) of NT$16.08 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of NT$467, suggesting that the company has met expectations in its recent result. 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. The most optimistic momo.com analyst has a price target of NT$500 per share, while the most pessimistic values it at NT$365. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 momo.com's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Compare this to the 11 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.4% per year. Factoring in the forecast slowdown in growth, it looks like momo.com is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at NT$467, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple momo.com analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for momo.com (1 is a bit unpleasant!) that you should be aware of.

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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.