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Masterflex SE (ETR:MZX) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of €52m and statutory earnings per share of €0.83 both in line with analyst estimates, showing that Masterflex is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Masterflex
Following last week's earnings report, Masterflex's two analysts are forecasting 2024 revenues to be €100.6m, approximately in line with the last 12 months. Per-share earnings are expected to rise 4.7% to €0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of €103.9m and earnings per share (EPS) of €0.91 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the €15.10 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Masterflex's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Masterflex's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 7.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Masterflex.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €15.10, with the latest estimates not enough to have an impact on their price targets.