Embellence Group AB (publ) Just Missed EPS By 6.7%: Here's What Analysts Think Will Happen Next

Investors in Embellence Group AB (publ) (STO:EMBELL) had a good week, as its shares rose 4.0% to close at kr36.40 following the release of its annual results. It looks like the results were a bit of a negative overall. While revenues of kr778m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.7% to hit kr2.50 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Embellence Group

Taking into account the latest results, the consensus forecast from Embellence Group's sole analyst is for revenues of kr811.0m in 2025. This reflects an okay 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 37% to kr3.32. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr799.0m and earnings per share (EPS) of kr3.36 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.5% to kr38.50. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Embellence Group's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 6.5% p.a. growth over the last five years. Compare this to the 15 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while Embellence Group'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 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Embellence Group you should be aware of.

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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.