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AtkinsRéalis Group Inc. (TSE:ATRL) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. While revenues of CA$9.7b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit CA$1.62 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.
Check out our latest analysis for AtkinsRéalis Group
Taking into account the latest results, the most recent consensus for AtkinsRéalis Group from twelve analysts is for revenues of CA$10.5b in 2025. If met, it would imply a notable 8.9% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 66% to CA$2.69. Before this earnings report, the analysts had been forecasting revenues of CA$10.3b and earnings per share (EPS) of CA$3.27 in 2025. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
There's been no major changes to the price target of CA$91.29, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. The most optimistic AtkinsRéalis Group analyst has a price target of CA$107 per share, while the most pessimistic values it at CA$65.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AtkinsRéalis Group's past performance and to peers in the same industry. It's clear from the latest estimates that AtkinsRéalis Group's rate of growth is expected to accelerate meaningfully, with the forecast 8.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AtkinsRéalis Group to grow faster than the wider industry.