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Last week, you might have seen that ATS Corporation (TSE:ATS) released its second-quarter result to the market. The early response was not positive, with shares down 5.1% to CA$40.43 in the past week. It was a pretty negative result overall, with revenues of CA$613m missing analyst predictions by 3.9%. Worse, the business reported a statutory loss of CA$0.01 per share, a substantial decline on analyst expectations of a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for ATS
Taking into account the latest results, the eight analysts covering ATS provided consensus estimates of CA$2.63b revenue in 2025, which would reflect a small 7.7% decline over the past 12 months. Statutory earnings per share are expected to plunge 41% to CA$0.79 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$2.81b and earnings per share (EPS) of CA$1.20 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the CA$50.92 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 ATS analyst has a price target of CA$63.00 per share, while the most pessimistic values it at CA$41.42. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 15% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.7% per year. It's pretty clear that ATS' revenues are expected to perform substantially worse than the wider industry.