Movado Group, Inc. Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

One of the biggest stories of last week was how Movado Group, Inc. (NYSE:MOV) shares plunged 21% in the week since its latest second-quarter results, closing yesterday at US$18.90. Statutory earnings per share of US$0.16 unfortunately missed expectations by 16%, although it was encouraging to see revenues of US$159m exceed expectations by 5.9%. Following the result, the analyst has 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Movado Group

Taking into account the latest results, Movado Group's solitary analyst currently expect revenues in 2025 to be US$663.3m, approximately in line with the last 12 months. Statutory earnings per share are expected to nosedive 44% to US$0.91 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$701.5m and earnings per share (EPS) of US$1.26 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 7.3% to US$38.00.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Movado Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.004% growth on an annualised basis. This is compared to a historical growth rate of 2.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Movado Group is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Movado Group. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Movado Group going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Movado Group 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.