Marimekko Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Investors in Marimekko Oyj (HEL:MEKKO) had a good week, as its shares rose 5.1% to close at €9.60 following the release of its third-quarter results. Marimekko Oyj reported €52m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.25 beat expectations, being 7.1% higher than what the analysts expected. 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.
Following the latest results, Marimekko Oyj's five analysts are now forecasting revenues of €208.0m in 2027. This would be a meaningful 8.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 15% to €0.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of €207.6m and earnings per share (EPS) of €0.71 in 2027. 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.
Check out our latest analysis for Marimekko Oyj
With no major changes to earnings forecasts, the consensus price target fell 9.8% to €11.28, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Marimekko Oyj at €12.00 per share, while the most bearish prices it at €10.60. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Marimekko Oyj's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.1% annually. Marimekko Oyj is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Marimekko Oyj's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Marimekko Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for Marimekko Oyj going out to 2028, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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