Analysts Have Made A Financial Statement On MYT Netherlands Parent B.V.'s (NYSE:MYTE) Interim Report
Investors in MYT Netherlands Parent B.V. (NYSE:MYTE) had a good week, as its shares rose 6.4% to close at US$3.00 following the release of its half-yearly results. Revenues of €385m were in line with expectations, although statutory losses per share were €0.06, some 11% smaller than was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for MYT Netherlands Parent B.V
Taking into account the latest results, the most recent consensus for MYT Netherlands Parent B.V from seven analysts is for revenues of €835.0m in 2024. If met, it would imply a modest 6.0% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 42% to €0.19. Before this latest report, the consensus had been expecting revenues of €834.5m and €0.17 per share in losses. While this year's revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
As a result, there was no major change to the consensus price target of US$3.91, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MYT Netherlands Parent B.V at US$5.01 per share, while the most bearish prices it at US$3.01. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of MYT Netherlands Parent B.V'shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.1% per year. So although MYT Netherlands Parent B.V is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at MYT Netherlands Parent B.V. 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 US$3.91, 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 MYT Netherlands Parent B.V. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple MYT Netherlands Parent B.V analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - MYT Netherlands Parent B.V has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
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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.
