One of the biggest stories of last week was how Markforged Holding Corporation (NYSE:MKFG) shares plunged 22% in the week since its latest second-quarter results, closing yesterday at US$0.24. Revenues of US$22m arrived in line with expectations, although statutory losses per share were US$0.07, an impressive 46% smaller than what broker models predicted. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Markforged Holding

Taking into account the latest results, the consensus forecast from Markforged Holding's four analysts is for revenues of US$90.6m in 2024. This reflects a modest 4.7% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$0.68. Before this latest report, the consensus had been expecting revenues of US$98.1m and US$0.28 per share in losses. While this year's revenue estimates dropped there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target fell 38% to US$0.78, implicitly signalling that lower earnings per share are a leading indicator for Markforged Holding's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Markforged Holding analyst has a price target of US$1.00 per share, while the most pessimistic values it at US$0.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Markforged Holding's rate of growth is expected to accelerate meaningfully, with the forecast 9.7% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.1% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Markforged Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Markforged Holding's revenue estimates, but industry data suggests that it is expected to grow faster than the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Markforged Holding going out to 2025, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 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.