Atturra Limited (ASX:ATA) Just Reported And Analysts Have Been Cutting Their Estimates

Atturra Limited (ASX:ATA) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of AU$0.046 per share roughly in line with what the analysts had forecast. Revenues of AU$178m came in 2.9% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Atturra after the latest results.

See our latest analysis for Atturra

Taking into account the latest results, the most recent consensus for Atturra from three analysts is for revenues of AU$214.4m in 2024. If met, it would imply a huge 20% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 13% to AU$0.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$234.1m and earnings per share (EPS) of AU$0.069 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The analysts made no major changes to their price target of AU$0.97, suggesting the downgrades are not expected to have a long-term impact on Atturra's valuation. 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 Atturra at AU$1.13 per share, while the most bearish prices it at AU$0.84. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Atturra is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Atturra's revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2024 being well below the historical 27% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% annually. Even after the forecast slowdown in growth, it seems obvious that Atturra is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Atturra's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at AU$0.97, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Atturra going out to 2026, and you can see them free on our platform here..

Even so, be aware that Atturra is showing 1 warning sign in our investment analysis , you should know about...

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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.