Atlas Technical Consultants, Inc. (NASDAQ:ATCX) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Atlas Technical Consultants, Inc. (NASDAQ:ATCX) shareholders, because the company has just released its latest yearly results, and the shares gained 7.9% to US$12.21. Revenues were in line with expectations, at US$539m, while statutory losses ballooned to US$0.81 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Atlas Technical Consultants

Following the latest results, Atlas Technical Consultants' six analysts are now forecasting revenues of US$592.2m in 2022. This would be a solid 9.9% improvement in sales compared to the last 12 months. Atlas Technical Consultants is also expected to turn profitable, with statutory earnings of US$0.28 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$575.1m and earnings per share (EPS) of US$0.25 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Atlas Technical Consultants 12% to US$16.00on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Atlas Technical Consultants, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$13.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We can infer from the latest estimates that forecasts expect a continuation of Atlas Technical Consultants'historical trends, as the 9.9% annualised revenue growth to the end of 2022 is roughly in line with the 12% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.8% annually. So although Atlas Technical Consultants is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Atlas Technical Consultants following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts for Atlas Technical Consultants going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Atlas Technical Consultants (including 1 which is significant) .

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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.