Results: H. Lundbeck A/S Beat Earnings Expectations And Analysts Now Have New Forecasts
As you might know, H. Lundbeck A/S (CPH:HLUN B) just kicked off its latest third-quarter results with some very strong numbers. H. Lundbeck beat earnings, with revenues hitting kr.6.6b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 20%. 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'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, H. Lundbeck's nine analysts currently expect revenues in 2027 to be kr.26.7b, approximately in line with the last 12 months. Statutory earnings per share are predicted to ascend 17% to kr.4.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.26.3b and earnings per share (EPS) of kr.4.66 in 2027. So the consensus seems to have become somewhat more optimistic on H. Lundbeck's earnings potential following these results.
Check out our latest analysis for H. Lundbeck
The consensus price target rose 8.7% to kr.54.50, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on H. Lundbeck, with the most bullish analyst valuing it at kr.70.00 and the most bearish at kr.36.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's pretty clear that there is an expectation that H. Lundbeck's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that H. Lundbeck is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around H. Lundbeck's earnings potential next year. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple H. Lundbeck analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for H. Lundbeck you should know about.
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