AtkinsRéalis Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, AtkinsRéalis (TSE:ATRL) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 2.7% to hit CA$8.6b. Statutory earnings per share (EPS) came in at CA$1.64, some 5.4% above whatthe analysts had expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for AtkinsRéalis

After the latest results, the eight analysts covering AtkinsRéalis are now predicting revenues of CA$9.10b in 2024. If met, this would reflect a satisfactory 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 18% to CA$1.93. In the lead-up to this report, the analysts had been modelling revenues of CA$8.63b and earnings per share (EPS) of CA$2.33 in 2024. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The analysts also upgraded AtkinsRéalis' price target 8.6% to CA$56.88, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. 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 AtkinsRéalis, with the most bullish analyst valuing it at CA$66.00 and the most bearish at CA$46.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AtkinsRéalis shareholders.

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. For example, we noticed that AtkinsRéalis' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.3% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.8% per year. So it looks like AtkinsRéalis is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AtkinsRéalis. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for AtkinsRéalis going out to 2026, and you can see them 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 AtkinsRéalis , 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.