Earnings Miss: MYT Netherlands Parent B.V. Missed EPS And Analysts Are Revising Their Forecasts
Investors in MYT Netherlands Parent B.V. (NYSE:MYTE) had a good week, as its shares rose 7.9% to close at US$11.08 following the release of its quarterly results. Revenues came in at €176m, in line with estimates, while MYT Netherlands Parent B.V reported a statutory loss of €0.04 per share, well short of prior analyst forecasts for a profit. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for MYT Netherlands Parent B.V
Taking into account the latest results, the consensus forecast from MYT Netherlands Parent B.V's eight analysts is for revenues of €785.7m in 2023, which would reflect a solid 11% improvement in sales compared to the last 12 months. MYT Netherlands Parent B.V is also expected to turn profitable, with statutory earnings of €0.30 per share. Before this earnings report, the analysts had been forecasting revenues of €782.1m and earnings per share (EPS) of €0.44 in 2023. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
The consensus price target held steady at US$16.31, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic MYT Netherlands Parent B.V analyst has a price target of US$20.54 per share, while the most pessimistic values it at US$9.97. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting MYT Netherlands Parent B.V's growth to accelerate, with the forecast 15% annualised growth to the end of 2023 ranking favourably alongside historical growth of 10.0% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MYT Netherlands Parent B.V to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MYT Netherlands Parent B.V. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$16.31, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple MYT Netherlands Parent B.V analysts - going out to 2025, and you can see them free on our platform here.
You can also see our analysis of MYT Netherlands Parent B.V's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
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