Embla Medical hf. Just Recorded A 28% EPS Beat: Here's What Analysts Are Forecasting Next
Embla Medical hf. (CPH:EMBLA) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of US$259m were what the analysts expected, Embla Medical hf surprised by delivering a (statutory) profit of US$0.068 per share, an impressive 28% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Embla Medical hf from five analysts is for revenues of US$1.02b in 2026. If met, it would imply an okay 3.6% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.9% to US$0.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.02b and earnings per share (EPS) of US$0.22 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Embla Medical hf
The consensus price target was unchanged at kr.33.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Embla Medical hf at kr.40.00 per share, while the most bearish prices it at kr.29.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.3% growth on an annualised basis. That is in line with its 7.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.3% annually. So although Embla Medical hf is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Embla Medical hf's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr.33.50, 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 Embla Medical hf. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Embla Medical hf going out to 2028, and you can see them free on our platform here..
You can also view our analysis of Embla Medical hf's balance sheet, and whether we think Embla Medical hf 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.