MakeMyTrip Surpasses Earnings Expectations Again, But Revenues Fall Short
Quarterly Earnings Report Details
MakeMyTrip (MMYT) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share. This is an increase compared to earnings of $0.25 per share from the previous year. The figures reflect adjustments for non-recurring items.
This quarterly report marks an earnings surprise of 9.09%. Just a quarter ago, the online travel company had forecasted earnings of $0.20 per share but delivered actual earnings of $0.39, resulting in a remarkable surprise of 95%.
Over the past year, the company has consistently outperformed consensus EPS estimates, achieving this feat four times in the last four quarters.
Revenue Insights
In the quarter ending September 2024, MakeMyTrip generated revenues of $210.99 million. However, this was 1.82% below the Zacks Consensus Estimate. This revenue figure is also an increase from the year-ago revenues of $168.69 million. Overall, the company has exceeded consensus revenue estimates three times across the previous four quarters.
The future behavior of MakeMyTrip’s stock price, in light of these results and upcoming earnings expectations, will largely depend on management’s insights during the earnings call.
Stock Performance Overview
MakeMyTrip shares have surged approximately 119.2% since the start of the year, a significant outperformance compared to the S&P 500, which has gained 22.7%.
Future Prospects for MakeMyTrip
As MakeMyTrip continues to perform well this year, investors are asking: what lies ahead for the stock?
While there’s no straightforward answer, a strong indicator can be the company’s earnings outlook. This includes current consensus earnings expectations for upcoming quarters and how these have recently changed.
Past research has demonstrated a strong link between stock movements and earnings estimate revisions. Investors can monitor these revisions or utilize rating tools like the Zacks Rank, known for its effectiveness in tracking earnings estimate movements.
Despite potential changes following the latest earnings report, MakeMyTrip has a favorable revision trend, resulting in a Zacks Rank #1 (Strong Buy). Consequently, its shares are anticipated to outperform the market in the near future. A current consensus EPS estimate stands at $0.43 on revenues of $256.59 million for the next quarter, and $1.66 on $972.25 million for the current fiscal year.
Investors should also be aware that broader industry trends significantly impact stock performance. The Internet – Delivery Services sector ranks favorably, sitting in the top 10% of over 250 Zacks industries. Research indicates stocks from the top-performing industries are more likely to outpace those from the bottom tier.
Competition and Upcoming Earnings
GoDaddy (GDDY), another key player in the same industry, has not yet reported its results for the quarter ending September 2024, with an expected release on October 30. GoDaddy is projected to post earnings of $1.25 per share, reflecting a yearly increase of 40.5%. The consensus EPS estimate has been revised slightly higher, and revenue expectations stand at $1.14 billion, indicating a 6.9% rise from the previous year.
Is Investing in MakeMyTrip Limited (MMYT) a Good Move?
Before deciding to invest in MakeMyTrip Limited (MMYT), it may be beneficial for investors to explore other stocks poised for growth in the next month. Zacks Investment Research offers insights into the seven best stocks to consider.
Zacks has been a trusted source for investment tools and independent research since 1978, and their Zacks Rank stock-rating system has historically outperformed the S&P 500, yielding an average gain of +24.08% per year from January 1, 1988, through May 6, 2024.
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MakeMyTrip Limited (MMYT): Free Stock Analysis Report
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