Results: Mycronic AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates
Mycronic AB (publ) (STO:MYCR) investors will be delighted, with the company turning in some strong numbers with its latest results. Mycronic delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting kr2.4b-11% above indicated-andkr2.41-39% above forecasts- respectively 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Mycronic from four analysts is for revenues of kr10.3b in 2027. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 7.8% to kr10.98. Before this earnings report, the analysts had been forecasting revenues of kr10.0b and earnings per share (EPS) of kr10.66 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
See our latest analysis for Mycronic
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr323, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Mycronic, with the most bullish analyst valuing it at kr385 and the most bearish at kr242 per share. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Mycronic's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.1% per year. Even after the forecast slowdown in growth, it seems obvious that Mycronic is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mycronic following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at kr323, with the latest estimates not enough to have an impact on their price targets.
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 forecasts for Mycronic going out to 2028, and you can see them free on our platform here.
We also provide an overview of the Mycronic Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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