Embellence Group AB (publ) Just Missed Revenue By 5.2%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Embellence Group AB (publ) (STO:EMBELL) filed its quarterly result this time last week. The early response was not positive, with shares down 6.5% to kr31.50 in the past week. Revenues came in 5.2% below expectations, at kr181m. Statutory earnings per share were relatively better off, with a per-share profit of kr0.61 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Embellence Group's twin analysts are now forecasting revenues of kr773.0m in 2026. This would be a modest 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.8% to kr2.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr784.0m and earnings per share (EPS) of kr2.87 in 2026. The consensus analysts don'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.

View our latest analysis for Embellence Group

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

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. The analysts are definitely expecting Embellence Group's growth to accelerate, with the forecast 6.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.6% annually. So it's clear that despite the acceleration in growth, Embellence Group is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 held steady at kr38.50, with the latest estimates not enough to have an impact on their price targets.

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. We have analyst estimates for Embellence Group going out as far as 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Embellence Group that you should be aware of.

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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.