Ependion AB Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Ependion AB (STO:EPEN) had a good week, as its shares rose 4.0% to close at kr120 following the release of its second-quarter results. Revenues were in line with forecasts, at kr561m, although statutory earnings per share came in 11% below what the analysts expected, at kr0.99 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Ependion from three analysts is for revenues of kr2.36b in 2025. If met, it would imply a notable 8.3% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 30% to kr5.22. Before this earnings report, the analysts had been forecasting revenues of kr2.37b and earnings per share (EPS) of kr5.83 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

See our latest analysis for Ependion

The consensus price target held steady at kr139, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Ependion analyst has a price target of kr148 per share, while the most pessimistic values it at kr130. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Ependion's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ependion to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ependion. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 estimates - from multiple Ependion analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Ependion's balance sheet, and whether we think Ependion is carrying too much debt, for free on our platform here.

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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.