Earnings Miss: Mistras Group, Inc. Missed EPS By 25% And Analysts Are Revising Their Forecasts

It's been a sad week for Mistras Group, Inc. (NYSE:MG), who've watched their investment drop 18% to US$9.13 in the week since the company reported its third-quarter result. Statutory earnings per share fell badly short of expectations, coming in at US$0.20, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$183m. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Mistras Group

Taking into account the latest results, Mistras Group's dual analysts currently expect revenues in 2025 to be US$748.8m, approximately in line with the last 12 months. Per-share earnings are expected to soar 133% to US$0.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$766.8m and earnings per share (EPS) of US$0.91 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The average price target climbed 16% to US$15.50despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Mistras Group'shistorical trends, as the 1.1% annualised revenue growth to the end of 2025 is roughly in line with the 1.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.7% annually. So although Mistras Group is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 Mistras Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Mistras Group has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.