US$16.67: That's What Analysts Think Embecta Corp. (NASDAQ:EMBC) Is Worth After Its Latest Results

It's been a sad week for Embecta Corp. (NASDAQ:EMBC), who've watched their investment drop 14% to US$12.57 in the week since the company reported its yearly result. Results were roughly in line with estimates, with revenues of US$1.1b and statutory earnings per share of US$1.62. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Embecta's four analysts are forecasting 2026 revenues to be US$1.08b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 54% to US$2.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.08b and earnings per share (EPS) of US$2.67 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Embecta

The average price target fell 9.1% to US$16.67, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. There are some variant perceptions on Embecta, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$11.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Embecta's past performance and to peers in the same industry. We would also point out that the forecast 0.03% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 0.9% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.4% per year. So while a broad number of companies are forecast to grow, unfortunately Embecta is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Embecta's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Embecta analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Embecta (2 can't be ignored!) that you need to take into consideration.

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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.