It should have been a fantastic day for engineering firm AtkinsRealis (TSE:ATRL), but it was anything but as far as investors were concerned. The earnings report it filed today was impressive, and recent developments suggest a slate of projects to come. Still, shares fell nearly 7% in Friday morning’s trading.
Atkins posted a slew of exciting data points, perhaps chief among which was an increase in revenue, going from $2.13 billion last year to $2.36 billion this year. That’s an 11% jump and nothing to sneeze at in an environment where so many firms are struggling to even match last year’s performances.
Profit attributable to shareholders was also up, surging from $63.8 million last year to $82.2 million this year’s quarter. Perhaps the biggest win of all went to its nuclear program, where the year-over-year estimate on organic growth was raised by the company from between 15% and 20% to between 30% and 35%. About the only bad point that emerged was a “slightly slimmer adjusted earnings margin” for the nuclear segment due to a change in the “business mix” this year.
No Shortage of Projects
One of the biggest projects that AtkinsRealis will embark on in the coming days is a waste-to-energy (WTE) plant for construction in Miami-Dade County in Florida. Atkins will be providing “…professional and owners engineering services…” to the plant that will ultimately process 4,000 tons of waste daily. It’s also set to be the largest WTE operation in the United States so far.
However, the new project hasn’t come without concerns from those who live around it. Area residents are concerned about “unpleasant odors” coming from the plant and ” potential risks to air and water quality.” In fact, reports note that if the plant is to be located in the city of Miramar, a lawsuit is already being readied to prevent its installation.
What Is the Target Price for AtkinsRealis?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:ATRL stock based on eight Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 21.67% rally in its share price over the past year, the average TSE:ATRL price target of C$67.11 per share implies 27.61% upside potential.
