kr29.00 - That's What Analysts Think Embellence Group AB (publ) (STO:EMBELL) Is Worth After These Results

Embellence Group AB (publ) (STO:EMBELL) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of kr214m arriving 4.0% ahead of forecasts. Statutory earnings per share (EPS) were kr0.72, 2.9% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Embellence Group after the latest results.

View our latest analysis for Embellence Group

Following the latest results, Embellence Group's sole analyst are now forecasting revenues of kr792.0m in 2024. This would be a modest 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 31% to kr2.47. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr774.0m and earnings per share (EPS) of kr2.27 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 12% to kr29.00per share.

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 can infer from the latest estimates that forecasts expect a continuation of Embellence Group'shistorical trends, as the 6.2% annualised revenue growth to the end of 2024 is roughly in line with the 7.2% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 1.6% annually. So it's pretty clear that Embellence Group is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Embellence Group following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on Embellence Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Embellence Group .

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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.