Embellence Group AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Embellence Group AB (publ) (STO:EMBELL) last week released its latest third-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr174m, statutory earnings missed forecasts by an incredible 31%, coming in at just kr0.55 per share. 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

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Following the latest results, Embellence Group's one analyst are now forecasting revenues of kr794.0m in 2026. This would be a reasonable 2.9% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of kr809.0m and earnings per share (EPS) of kr3.31 in 2026. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

See our latest analysis for Embellence Group

We'd also point out that thatthe analyst has made no major changes to their price target of kr39.50.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Embellence Group's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2026 being well below the historical 5.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Embellence Group.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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.

We have estimates for Embellence Group from one covering analyst, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Embellence Group , and understanding them should be part of your investment process.

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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.