There's been a notable change in appetite for Mistras Group, Inc. (NYSE:MG) shares in the week since its quarterly report, with the stock down 19% to US$8.73. Statutory earnings per share fell badly short of expectations, coming in at US$0.20, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$183m. 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.

See our latest analysis for Mistras Group

Following the latest results, Mistras Group's dual analysts are now forecasting revenues of US$756.1m in 2025. This would be an okay 2.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 134% to US$0.85. Before this earnings report, the analysts had been forecasting revenues of US$766.8m and earnings per share (EPS) of US$0.91 in 2025. 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.

Despite cutting their earnings forecasts,the analysts have lifted their price target 16% to US$15.50, 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 Mistras Group's rate of growth is expected to accelerate meaningfully, with the forecast 1.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.3% p.a. 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 5.6% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Mistras Group is expected to grow slower 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. 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 analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Mistras Group going out as far as 2026, and you can see them free on our platform here.

Even so, be aware that Mistras Group is showing 4 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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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.