Ependion AB (STO:EPEN) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of kr664m, some 6.2% above estimates, and statutory earnings per share (EPS) coming in at kr1.76, 26% ahead of expectations. 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.
Taking into account the latest results, the current consensus from Ependion's three analysts is for revenues of kr2.94b in 2027. This would reflect a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 51% to kr8.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.90b and earnings per share (EPS) of kr8.50 in 2027. So the consensus seems to have become somewhat more optimistic on Ependion's earnings potential following these results.
See our latest analysis for Ependion
The consensus price target was unchanged at kr175, 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 Ependion at kr190 per share, while the most bearish prices it at kr160. This is a very narrow spread of estimates, implying either that Ependion is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Ependion's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ependion to grow faster than 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 Ependion's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr175, 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 Ependion. 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 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.
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