Mama's Creations, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of Mama's Creations, Inc. (NASDAQ:MAMA) will be pleased this week, given that the stock price is up 14% to US$5.54 following its latest yearly results. The result was positive overall - although revenues of US$103m were in line with what the analysts predicted, Mama's Creations surprised by delivering a statutory profit of US$0.17 per share, modestly greater than expected. Following the result, the analysts have 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mama's Creations

Taking into account the latest results, the current consensus from Mama's Creations' four analysts is for revenues of US$116.4m in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 8.0% to US$0.16 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$114.7m and earnings per share (EPS) of US$0.19 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at US$7.90, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Mama's Creations at US$10.00 per share, while the most bearish prices it at US$6.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Mama's Creations' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 29% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.7% per year. So it's pretty clear that, while Mama's Creations' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mama's Creations. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$7.90, 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 Mama's Creations. Long-term earnings power is much more important than next year's profits. We have forecasts for Mama's Creations going out to 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 1 warning sign for Mama's Creations 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.