Embellence Group AB (publ) Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Embellence Group AB (publ) (STO:EMBELL) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.1% to hit kr193m. Statutory earnings per share (EPS) came in at kr0.65, some 8.3% above whatthe analyst had expected. Following the result, the analyst has 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Embellence Group's sole analyst currently expect revenues in 2025 to be kr780.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 14% to kr3.26. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr773.0m and earnings per share (EPS) of kr3.20 in 2025. The consensus analyst doesn'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 Embellence Group

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr39.50.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 3.0% growth on an annualised basis. That is in line with its 3.7% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.9% per year. So it's pretty clear that Embellence Group is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Embellence Group going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Embellence Group that you need to take into consideration.

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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.