ACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) Interim Results: Here's What Analysts Are Forecasting For This Year

ACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) shareholders are probably feeling a little disappointed, since its shares fell 3.0% to €58.60 in the week after its latest half-year results. ACS Actividades de Construcción y Servicios reported in line with analyst predictions, delivering revenues of €24b and statutory earnings per share of €3.23, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, ACS Actividades de Construcción y Servicios' 14 analysts currently expect revenues in 2025 to be €46.8b, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 11% to €3.01 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €47.0b and earnings per share (EPS) of €3.11 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for ACS Actividades de Construcción y Servicios

The consensus price target held steady at €57.49, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values ACS Actividades de Construcción y Servicios at €67.50 per share, while the most bearish prices it at €50.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2025. This indicates a significant reduction from annual growth of 8.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ACS Actividades de Construcción y Servicios is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ACS Actividades de Construcción y Servicios. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ACS Actividades de Construcción y Servicios' revenue is expected to perform worse 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.

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 ACS Actividades de Construcción y Servicios going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for ACS Actividades de Construcción y Servicios (1 makes us a bit uncomfortable!) 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.