Arcosa, Inc. (NYSE:ACA) Analysts Are Pretty Bullish On The Stock After Recent Results
As you might know, Arcosa, Inc. (NYSE:ACA) recently reported its full-year numbers. Arcosa reported in line with analyst predictions, delivering revenues of US$2.3b and statutory earnings per share of US$3.26, suggesting the business is executing well and in line with its plan. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Arcosa
Following the latest results, Arcosa's five analysts are now forecasting revenues of US$2.55b in 2024. This would be a decent 11% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$3.29, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$2.47b and earnings per share (EPS) of US$3.26 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.
The consensus price target increased 9.1% to US$93.40, with an improved revenue forecast carrying the promise of a more valuable business, in time. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Arcosa at US$103 per share, while the most bearish prices it at US$89.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Arcosa is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Arcosa's growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Arcosa to grow faster than the wider industry.
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. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Arcosa going out to 2025, and you can see them free on our platform here.
Even so, be aware that Arcosa is showing 2 warning signs in our investment analysis , you should know about...
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.
