Here's What Analysts Are Forecasting For Atlas Copco AB (STO:ATCO A) After Its Third-Quarter Results

As you might know, Atlas Copco AB (STO:ATCO A) last week released its latest quarterly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.9% short of analyst estimates at kr43b, and statutory earnings of kr1.47 per share missed forecasts by 4.7%. 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

Taking into account the latest results, the consensus forecast from Atlas Copco's 19 analysts is for revenues of kr185.9b in 2025. This reflects an okay 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.9% to kr6.42. Before this earnings report, the analysts had been forecasting revenues of kr186.9b and earnings per share (EPS) of kr6.47 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of kr188, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Atlas Copco analyst has a price target of kr238 per share, while the most pessimistic values it at kr122. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. 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 2025 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% annually. Factoring in the forecast slowdown in growth, it looks like Atlas Copco is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on Atlas Copco. Long-term earnings power is much more important than next year's profits. 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 view our analysis of Atlas Copco's balance sheet, and whether we think Atlas Copco is carrying too much debt, for free 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.