Analyst Estimates: Here's What Brokers Think Of Alten S.A. (EPA:ATE) After Its Second-Quarter Report

It's been a good week for Alten S.A. (EPA:ATE) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.5% to €69.90. Results were roughly in line with estimates, with revenues of €1.0b and statutory earnings per share of €5.32. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alten after the latest results.

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Taking into account the latest results, Alten's six analysts currently expect revenues in 2025 to be €4.08b, approximately in line with the last 12 months. Per-share earnings are expected to jump 31% to €5.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.09b and earnings per share (EPS) of €6.06 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Alten

The consensus price target held steady at €96.69, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Alten at €118 per share, while the most bearish prices it at €66.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 revenue is expected to reverse, with a forecast 1.9% annualised decline to the end of 2025. That is a notable change from historical growth of 12% 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 4.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Alten 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 Alten. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Alten's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €96.69, with the latest estimates not enough to have an impact on their price targets.

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 Alten going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for Alten that you need to take into consideration.

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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.