Earnings Miss: Ambu A/S Missed EPS By 6.2% And Analysts Are Revising Their Forecasts

Ambu A/S (CPH:AMBU B) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of kr.1.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr.0.68, missing estimates by 6.2%. The analysts 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Ambu

Taking into account the latest results, the most recent consensus for Ambu from eight analysts is for revenues of kr.6.22b in 2025. If met, it would imply a solid 10% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 122% to kr.2.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.6.23b and earnings per share (EPS) of kr.2.63 in 2025. So the consensus seems to have become somewhat more optimistic on Ambu's earnings potential following these results.

There's been no major changes to the consensus price target of kr.141, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. Currently, the most bullish analyst values Ambu at kr.165 per share, while the most bearish prices it at kr.90.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ambu's past performance and to peers in the same industry. It's clear from the latest estimates that Ambu's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ambu is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ambu's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr.141, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Ambu going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Ambu that we have uncovered.

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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.