Industry Analysts Just Made A Upgrade To Their Arcadis NV (AMS:ARCAD) Revenue Forecasts

Arcadis NV (AMS:ARCAD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, the six analysts covering Arcadis provided consensus estimates of €4.0b revenue in 2024, which would reflect an uneasy 19% decline on its sales over the past 12 months. Statutory earnings per share are presumed to leap 57% to €2.79. Prior to this update, the analysts had been forecasting revenues of €4.0b and earnings per share (EPS) of €2.82 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business.

View our latest analysis for Arcadis

Analysts reconfirmed their price target of €64.64, showing that the business is executing well and in line with expectations.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2024. This indicates a significant reduction from annual growth of 7.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Arcadis is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. There were no major changes to revenue forecasts, with analysts still expecting the business to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Arcadis.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Arcadis going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.