Results: Embla Medical hf. Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in Embla Medical hf. (CPH:EMBLA) had a good week, as its shares rose 3.8% to close at kr.35.20 following the release of its quarterly results. Revenues were US$214m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.053, an impressive 20% ahead of estimates. 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.

See our latest analysis for Embla Medical hf

After the latest results, the five analysts covering Embla Medical hf are now predicting revenues of US$939.8m in 2025. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 33% to US$0.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$939.7m and earnings per share (EPS) of US$0.21 in 2025. So the consensus seems to have become somewhat more optimistic on Embla Medical hf's earnings potential following these results.

The consensus price target was unchanged at kr.37.58, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Embla Medical hf, with the most bullish analyst valuing it at kr.41.00 and the most bearish at kr.33.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Embla Medical hf's past performance and to peers in the same industry. The analysts are definitely expecting Embla Medical hf's growth to accelerate, with the forecast 9.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Embla Medical hf is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Embla Medical hf following these results. 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.37.58, with the latest estimates not enough to have an impact on their price targets.

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 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 Embla Medical hf 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.