Yahoo Finance US$1.32: That's What Analysts Think Markforged Holding Corporation (NYSE:MKFG) Is Worth After Its Latest Results
As you might know, Markforged Holding Corporation (NYSE:MKFG) just kicked off its latest full-year results with some very strong numbers. It looks like a positive result overall, with revenues of US$94m beating forecasts by 2.9%. Statutory losses of US$0.53 per share were 2.9% smaller than the analysts expected, likely helped along by the higher revenues. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Markforged Holding
Taking into account the latest results, the current consensus from Markforged Holding's four analysts is for revenues of US$97.6m in 2024. This would reflect a reasonable 4.1% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 42% to US$0.30. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$95.2m and losses of US$0.32 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.
The consensus price target fell 34%, to US$1.32, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook. 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 Markforged Holding, with the most bullish analyst valuing it at US$1.50 and the most bearish at US$1.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Markforged Holding's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.4% annually. Factoring in the forecast slowdown in growth, it looks like Markforged Holding is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Markforged Holding will grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 estimates - from multiple Markforged Holding analysts - going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Markforged Holding 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.
