ATS Corporation (TSE:ATS) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that ATS Corporation (TSE:ATS) filed its second-quarter result this time last week. The early response was not positive, with shares down 2.3% to CA$37.70 in the past week. The result was positive overall - although revenues of CA$728m were in line with what the analysts predicted, ATS surprised by delivering a statutory profit of CA$0.34 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ATS after the latest results.

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Taking into account the latest results, the consensus forecast from ATS' eight analysts is for revenues of CA$2.95b in 2026. This reflects a notable 9.6% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with ATS forecast to report a statutory profit of CA$1.26 per share. Before this earnings report, the analysts had been forecasting revenues of CA$2.95b and earnings per share (EPS) of CA$1.27 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for ATS

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$48.62. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values ATS at CA$54.00 per share, while the most bearish prices it at CA$42.37. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's clear from the latest estimates that ATS' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ATS is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for ATS going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for ATS that you should be aware of.

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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.