Results: Ambu A/S Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Ambu A/S (CPH:AMBU B) had a good week, as its shares rose 2.9% to close at kr.115 following the release of its first-quarter results. It looks like a credible result overall - although revenues of kr.1.3b were what the analysts expected, Ambu surprised by delivering a (statutory) profit of kr.0.35 per share, an impressive 30% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Ambu

Taking into account the latest results, the current consensus from Ambu's six analysts is for revenues of kr.5.26b in 2024. This would reflect an okay 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 60% to kr.1.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.5.27b and earnings per share (EPS) of kr.1.39 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 7.4% to kr.103, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Ambu, with the most bullish analyst valuing it at kr.130 and the most bearish at kr.52.00 per share. 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. We can infer from the latest estimates that forecasts expect a continuation of Ambu'shistorical trends, as the 9.9% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So it's pretty clear that Ambu is forecast to grow substantially 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Ambu. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ambu analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Ambu you should know about.

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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.