Investors in Modivo S.A. (WSE:MDV) had a good week, as its shares rose 2.2% to close at zł90.20 following the release of its quarterly results. Revenues came in 2.3% below expectations, at zł3.0b. Statutory earnings per share were relatively better off, with a per-share profit of zł0.29 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Modivo from ten analysts is for revenues of zł12.0b in 2027. If met, it would imply a reasonable 7.2% increase on its revenue over the past 12 months. Earnings are expected to improve, with Modivo forecast to report a statutory profit of zł3.98 per share. In the lead-up to this report, the analysts had been modelling revenues of zł12.1b and earnings per share (EPS) of zł4.23 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for Modivo
The average price target fell 5.4% to zł92.55, with reduced earnings forecasts clearly tied to a lower valuation estimate. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Modivo, with the most bullish analyst valuing it at zł142 and the most bearish at zł56.70 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Modivo's past performance and to peers in the same industry. It's clear from the latest estimates that Modivo's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.5% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Modivo 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 Modivo. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Modivo's future valuation.
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 forecasts for Modivo going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Modivo that you should be aware of.
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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.