Yahoo Finance Movado Group, Inc. Just Beat EPS By 9.9%: Here's What Analysts Think Will Happen Next
Investors in Movado Group, Inc. (NYSE:MOV) had a good week, as its shares rose 5.1% to close at US$27.93 following the release of its annual results. Movado Group reported US$673m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.10 beat expectations, being 9.9% higher than what the analyst expected. The analyst 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 gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
See our latest analysis for Movado Group
Taking into account the latest results, the consensus forecast from Movado Group's lone analyst is for revenues of US$700.8m in 2025. This reflects an okay 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 47% to US$1.12 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$689.9m and earnings per share (EPS) of US$2.06 in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
Despite cutting their earnings forecasts,the analyst has lifted their price target 7.9% to US$41.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
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. It's clear from the latest estimates that Movado Group's rate of growth is expected to accelerate meaningfully, with the forecast 4.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Movado Group is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Movado Group's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 2 warning signs for Movado Group that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
