Earnings Update: MotorK plc (AMS:MTRK) Just Reported And Analysts Are Trimming Their Forecasts
Investors in MotorK plc (AMS:MTRK) had a good week, as its shares rose 2.5% to close at €2.47 following the release of its yearly results. The result was fairly weak overall, with revenues of €39m being 8.3% less than what the analysts had been modelling. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for MotorK
Taking into account the latest results, the current consensus from MotorK's three analysts is for revenues of €39.5m in 2023, which would reflect a satisfactory 2.5% increase on its sales over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €52.9m and earnings per share (EPS) of €0.09 in 2023. Overall, while there's been a large cut to revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that after the latest results, the market believes revenue is more important.
The average price target fell 16% to €2.43, withthe analysts clearly having become less optimistic about MotorK'sprospects following its latest earnings. 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 MotorK, with the most bullish analyst valuing it at €2.70 and the most bearish at €2.15 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. We would highlight that MotorK's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2023 being well below the historical 17% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that MotorK is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of MotorK's future valuation.
We have estimates for MotorK from its three analysts out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with MotorK .
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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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