Embla Medical hf. Just Missed EPS By 5.8%: Here's What Analysts Think Will Happen Next

Embla Medical hf. (CPH:EMBLA) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of US$855m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.16, missing estimates by 5.8%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Embla Medical hf after the latest results.

View our latest analysis for Embla Medical hf

Taking into account the latest results, the most recent consensus for Embla Medical hf from six analysts is for revenues of US$910.4m in 2025. If met, it would imply a satisfactory 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 30% to US$0.21. In the lead-up to this report, the analysts had been modelling revenues of US$920.2m and earnings per share (EPS) of US$0.21 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of kr.39.12, suggesting that the company has met expectations in its recent result. 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. The most optimistic Embla Medical hf analyst has a price target of kr.42.80 per share, while the most pessimistic values it at kr.36.00. This is a very narrow spread of estimates, implying either that Embla Medical hf is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.5% growth on an annualised basis. That is in line with its 5.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.1% annually. So although Embla Medical hf is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Embla Medical hf. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Embla Medical hf going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Embla Medical hf's balance sheet, and whether we think Embla Medical hf is carrying too much debt, for free on our platform here.

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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.