Atlas Copco AB (STO:ATCO A) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

Last week saw the newest yearly earnings release from Atlas Copco AB (STO:ATCO A), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of kr173b and statutory earnings per share of kr5.75. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Atlas Copco after the latest results.

See our latest analysis for Atlas Copco

Following last week's earnings report, Atlas Copco's 20 analysts are forecasting 2024 revenues to be kr173.1b, approximately in line with the last 12 months. Statutory per share are forecast to be kr5.87, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr174.7b and earnings per share (EPS) of kr5.97 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 following the latest results.

The analysts reconfirmed their price target of kr164, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Atlas Copco, with the most bullish analyst valuing it at kr200 and the most bearish at kr115 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 Atlas Copco shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Atlas Copco's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Atlas Copco is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Atlas Copco's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr164, with the latest estimates not enough to have an impact on their price targets.

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 Atlas Copco going out to 2026, and you can see them free on our platform here..

You can also see whether Atlas Copco is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.