Analyst Estimates: Here's What Brokers Think Of Materialise NV (NASDAQ:MTLS) After Its Second-Quarter Report

Shareholders might have noticed that Materialise NV (NASDAQ:MTLS) filed its quarterly result this time last week. The early response was not positive, with shares down 8.8% to US$5.33 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at €65m, statutory earnings were in line with expectations, at €0.23 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Materialise's two analysts currently expect revenues in 2025 to be €266.7m, approximately in line with the last 12 months. Per-share earnings are expected to bounce 68% to €0.16. Before this earnings report, the analysts had been forecasting revenues of €276.0m and earnings per share (EPS) of €0.15 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

Check out our latest analysis for Materialise

There's been no real change to the average price target of US$8.99, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Materialise's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Materialise's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 9.7% 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 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Materialise.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Materialise's earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$8.99, 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 Materialise. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Materialise that you need to be mindful 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.