Mama's Creations, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Mama's Creations, Inc. (NASDAQ:MAMA) filed its quarterly result this time last week. The early response was not positive, with shares down 5.2% to US$6.55 in the past week. Results were mixed, with revenues of US$30m exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were US$0.01 per share, -57% short of analyst expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Mama's Creations

Taking into account the latest results, the consensus forecast from Mama's Creations' four analysts is for revenues of US$120.3m in 2025. This reflects a decent 9.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$0.15, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$116.4m and earnings per share (EPS) of US$0.17 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a decent to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The analysts also upgraded Mama's Creations' price target 32% to US$10.38, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Mama's Creations, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$8.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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) 3.0% per year. Even after the forecast slowdown in growth, it seems obvious that Mama's Creations 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 Mama's Creations. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for Mama's Creations going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Mama's Creations you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com