Earnings Beat: Embellence Group AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The third-quarter results for Embellence Group AB (publ) (STO:EMBELL) were released last week, making it a good time to revisit its performance. It looks like a credible result overall – although revenues of kr178m were in line with what the analyst predicted, Embellence Group surprised by delivering a statutory profit of kr0.69 per share, a notable 15% above expectations. 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.

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Taking into account the latest results, the most recent consensus for Embellence Group from sole analyst is for revenues of kr834.0m in 2027. If met, it would imply a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 21% to kr3.33. In the lead-up to this report, the analyst had been modelling revenues of kr834.0m and earnings per share (EPS) of kr3.33 in 2027. 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.

See our latest analysis for Embellence Group

The analyst reconfirmed their price target of kr38.50, showing that the business is executing well and in line with expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that Embellence Group’s rate of growth is expected to accelerate meaningfully, with the forecast 8.2% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.2% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.4% per year. Embellence Group is expected to grow at about the same rate as its industry, so it’s not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr38.50, with the latest estimates not enough to have an impact on their price target.

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 2028, and you can see them free on our platform here.

You still need to take note of risks, for example – Embellence Group has 2 warning signs we think you should be aware of.

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