Examining the Future: MakeMyTrip's Earnings Outlook

MakeMyTrip MMYT is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect MakeMyTrip to report an earnings per share (EPS) of $0.26.

MakeMyTrip bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

Last quarter the company beat EPS by $0.11, which was followed by a 6.23% drop in the share price the next day.

Here's a look at MakeMyTrip's past performance and the resulting price change:

MakeMyTrip Share Price Analysis

Shares of MakeMyTrip were trading at $104.59 as of October 21. Over the last 52-week period, shares are up 171.6%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on MakeMyTrip

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding MakeMyTrip.

Analysts have given MakeMyTrip a total of 3 ratings, with the consensus rating being Buy. The average one-year price target is $109.0, indicating a potential 4.22% upside.

Comparing Ratings Among Industry Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Norwegian Cruise Line, Hyatt Hotels and Hilton Grand Vacations, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Norwegian Cruise Line received a Neutral consensus from analysts, with an average 1-year price target of $24.65, implying a potential 76.43% downside.
• Analysts currently favor an Neutral trajectory for Hyatt Hotels, with an average 1-year price target of $160.12, suggesting a potential 53.09% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for Hilton Grand Vacations, with an average 1-year price target of $41.83, implying a potential 60.01% downside.

Overview of Peer Analysis

Within the peer analysis summary, vital metrics for Norwegian Cruise Line, Hyatt Hotels and Hilton Grand Vacations are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

MakeMyTrip ranks at the bottom for Revenue Growth among its peers. It is at the bottom for Gross Profit as well. MakeMyTrip is at the bottom for Return on Equity.

About MakeMyTrip

MakeMyTrip Ltd is an online travel company, which provides online booking solutions for day-to-day travel needs. The company's operating segment includes Air ticketing; Hotels and packages; Bus ticketing and Others. It generates maximum revenue from the Hotels and packages segment. The Hotels and packages segments include internet-based platforms, call-centers, and branch offices, which provide holiday packages and hotel reservations. Its Air ticketing segment includes internet-based platforms, provides the facility to book domestic and international air tickets. Geographically, it derives a majority of revenue from India and also has a presence in the United States; South East Asia; Europe, and other countries.

Financial Milestones: MakeMyTrip's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: MakeMyTrip displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 29.37%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: MakeMyTrip's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 8.26%, the company may face hurdles in effective cost management.

Return on Equity (ROE): MakeMyTrip's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.87%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): MakeMyTrip's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.24%, the company may face hurdles in achieving optimal financial returns.

Debt Management: MakeMyTrip's debt-to-equity ratio is below the industry average at 0.2, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for MakeMyTrip visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.