Embellence Group AB (publ) Just Recorded A 6.7% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Embellence Group AB (publ) (STO:EMBELL) filed its annual result this time last week. The early response was not positive, with shares down 2.1% to kr23.00 in the past week. The result was positive overall - although revenues of kr741m were in line with what the analyst predicted, Embellence Group surprised by delivering a statutory profit of kr1.74 per share, modestly greater than 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for Embellence Group

Taking into account the latest results, the current consensus from Embellence Group's single analyst is for revenues of kr758.0m in 2024. This would reflect a credible 2.4% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 29% to kr2.25. In the lead-up to this report, the analyst had been modelling revenues of kr760.0m and earnings per share (EPS) of kr2.21 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr27.00.

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 Embellence Group's revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2024 being well below the historical 6.2% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.2% annually. So it's clear that despite the slowdown in growth, Embellence Group is still expected to grow meaningfully faster than 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 analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Embellence Group's revenue is expected to perform better 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Embellence Group going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Embellence Group that you need to be mindful of.

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.