ACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) Interim Results: Here's What Analysts Are Forecasting For This Year
ACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to €110 in the week after its latest interim results. Results were roughly in line with estimates, with revenues of €26b and statutory earnings per share of €3.69. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from ACS Actividades de Construcción y Servicios' 16 analysts is for revenues of €55.5b in 2026. This reflects an okay 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 20% to €4.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of €55.8b and earnings per share (EPS) of €4.24 in 2026. So the consensus seems to have become somewhat more optimistic on ACS Actividades de Construcción y Servicios' earnings potential following these results.
See our latest analysis for ACS Actividades de Construcción y Servicios
There's been no major changes to the consensus price target of €127, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ACS Actividades de Construcción y Servicios, with the most bullish analyst valuing it at €159 and the most bearish at €78.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.6% annually. So it's pretty clear that ACS Actividades de Construcción y Servicios is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ACS Actividades de Construcción y Servicios' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €127, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for ACS Actividades de Construcción y Servicios going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with ACS Actividades de Construcción y Servicios , and understanding them should be part of your investment process.
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.