Earnings Miss: Microvast Holdings, Inc. Missed EPS And Analysts Are Revising Their Forecasts

There's been a major selloff in Microvast Holdings, Inc. (NASDAQ:MVST) shares in the week since it released its third-quarter report, with the stock down 24% to US$4.03. Revenues of US$123m beat expectations by 2.7%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of US$0.0046 compared to previous analyst expectations of 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Microvast Holdings from two analysts is for revenues of US$544.2m in 2026. If met, it would imply a sizeable 22% increase on its revenue over the past 12 months. Microvast Holdings is also expected to turn profitable, with statutory earnings of US$0.085 per share. Before this earnings report, the analysts had been forecasting revenues of US$593.9m and earnings per share (EPS) of US$0.11 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

View our latest analysis for Microvast Holdings

The average price target climbed 18% to US$6.50despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Microvast Holdings' past performance and to peers in the same industry. We would highlight that Microvast Holdings' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2026 being well below the historical 29% 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 5.5% annually. Even after the forecast slowdown in growth, it seems obvious that Microvast Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Microvast Holdings. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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 Microvast Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Microvast Holdings going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Microvast Holdings has 1 warning sign we think 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.