Genmab A/S Just Beat EPS By 44%: Here's What Analysts Think Will Happen Next

Investors in Genmab A/S (CPH:GMAB) had a good week, as its shares rose 8.6% to close at kr.1,504 following the release of its annual results. Revenues were kr.22b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr.121, an impressive 44% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Genmab

After the latest results, the 21 analysts covering Genmab are now predicting revenues of kr.25.3b in 2025. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to descend 13% to kr.107 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr.24.9b and earnings per share (EPS) of kr.92.39 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of kr.2,201, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Genmab analyst has a price target of kr.2,970 per share, while the most pessimistic values it at kr.1,431. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Genmab's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 20% annually. So it's pretty clear that, while Genmab's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Genmab following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Genmab going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Genmab Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.