Ependion AB Just Beat Revenue By 6.9%: Here's What Analysts Think Will Happen Next
Investors in Ependion AB (STO:EPEN) had a good week, as its shares rose 4.8% to close at kr156 following the release of its second-quarter results. Results overall were respectable, with statutory earnings of kr1.40 per share roughly in line with what the analysts had forecast. Revenues of kr682m came in 6.9% ahead of analyst predictions. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Ependion's three analysts is for revenues of kr2.57b in 2026. This would reflect a reasonable 7.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 16% to kr6.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.50b and earnings per share (EPS) of kr5.97 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
See our latest analysis for Ependion
It will come as no surprise to learn that the analysts have increased their price target for Ependion 12% to kr165on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Ependion analyst has a price target of kr180 per share, while the most pessimistic values it at kr146. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Ependion's growth to accelerate, with the forecast 14% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ependion is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ependion following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Ependion going out to 2028, and you can see them free on our platform here.
You can also see whether Ependion is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.