Results: Ambea AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts
The investors in Ambea AB (publ)'s (STO:AMBEA) will be rubbing their hands together with glee today, after the share price leapt 23% to kr175 in the week following its quarterly results. Revenues were kr4.4b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr2.13 were also better than expected, beating analyst predictions by 15%. 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.
After the latest results, the dual analysts covering Ambea are now predicting revenues of kr17.4b in 2026. If met, this would reflect a reasonable 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to kr10.82. In the lead-up to this report, the analysts had been modelling revenues of kr17.4b and earnings per share (EPS) of kr10.31 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 Ambea
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.1% to kr189.
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. We would highlight that Ambea's revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2026 being well below the historical 8.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Ambea is also expected to grow slower than other industry participants.
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 Ambea 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Ambea , and understanding it should be part of your investment process.
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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.