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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Movado Group's sole analyst is for revenues of US$700.8m in 2025. This would reflect a credible 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to tumble 47% to US$1.12 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$689.9m and earnings per share (EPS) of US$2.06 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 7.9% to US$41.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.
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. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Movado Group going out as far as 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Movado Group 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.