Yahoo Finance Earnings Miss: Medacta Group SA Missed EPS By 24% And Analysts Are Revising Their Forecasts
Shareholders might have noticed that Medacta Group SA (VTX:MOVE) filed its yearly result this time last week. The early response was not positive, with shares down 2.8% to CHF123 in the past week. Statutory earnings per share fell badly short of expectations, coming in at €2.37, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €511m. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Medacta Group
Taking into account the latest results, the consensus forecast from Medacta Group's seven analysts is for revenues of €597.2m in 2024. This reflects a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 62% to €3.84. In the lead-up to this report, the analysts had been modelling revenues of €593.4m and earnings per share (EPS) of €3.91 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF142. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Medacta Group, with the most bullish analyst valuing it at CHF154 and the most bearish at CHF130 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Medacta Group's past performance and to peers in the same industry. It's clear from the latest estimates that Medacta Group's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Medacta Group to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 CHF142, 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 Medacta Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Medacta Group going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Medacta Group that we have uncovered.
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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.
