Yahoo Finance AU$3.19: That's What Analysts Think Money3 Corporation Limited (ASX:MNY) Is Worth After Its Latest Results
Investors in Money3 Corporation Limited (ASX:MNY) had a good week, as its shares rose 4.8% to close at AU$2.41 following the release of its yearly results. Revenues came in 2.2% below expectations, at AU$188m. Statutory earnings per share were relatively better off, with a per-share profit of AU$0.24 being roughly in line with analyst estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Money3
Taking into account the latest results, the most recent consensus for Money3 from four analysts is for revenues of AU$219.6m in 2023 which, if met, would be a notable 17% increase on its sales over the past 12 months. Statutory earnings per share are predicted to increase 7.6% to AU$0.26. In the lead-up to this report, the analysts had been modelling revenues of AU$222.7m and earnings per share (EPS) of AU$0.28 in 2023. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target fell 15% to AU$3.19, with the analysts clearly linking lower forecast earnings to the performance of the stock price. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Money3, with the most bullish analyst valuing it at AU$3.73 and the most bearish at AU$2.85 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. The analysts are definitely expecting Money3's growth to accelerate, with the forecast 17% annualised growth to the end of 2023 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Money3 to grow faster than the wider industry.
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. Happily, there were no major changes to revenue forecasts, with the business still 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 Money3's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Money3 going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 3 warning signs for Money3 (1 is significant!) that we have uncovered.
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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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