Zealand Pharma A/S (CPH:ZEAL) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Zealand Pharma A/S (CPH:ZEAL) just released its latest third-quarter results and things are looking bullish. Revenue crushed expectations at kr.50m, beating expectations by 64%. Zealand Pharma reported a statutory loss of kr.5.75 per share, which - although not amazing - was much smaller than the analysts predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the recent earnings report, the consensus from 15 analysts covering Zealand Pharma is for revenues of kr.4.76b in 2026. This implies a concerning 48% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 87% to kr.12.25 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr.4.81b and earnings per share (EPS) of kr.12.33 in 2026. 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.

See our latest analysis for Zealand Pharma

There were no changes to revenue or earnings estimates or the price target of kr.810, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Zealand Pharma at kr.1,120 per share, while the most bearish prices it at kr.430. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 41% annualised decline to the end of 2026. That is a notable change from historical growth of 85% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Zealand Pharma is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Zealand Pharma going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Zealand Pharma has 2 warning signs (and 1 which can't be ignored) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.