Investors in ARC Document Solutions, Inc. (NYSE:ARC) had a good week, as its shares rose 4.1% to close at US$2.79 following the release of its quarterly results. It was a credible result overall, with revenues of US$71m and statutory earnings per share of US$0.19 both in line with analyst estimates, showing that ARC Document Solutions is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for ARC Document Solutions

Taking into account the latest results, ARC Document Solutions' single analyst currently expect revenues in 2024 to be US$286.0m, approximately in line with the last 12 months. Per-share earnings are expected to ascend 18% to US$0.24. In the lead-up to this report, the analyst had been modelling revenues of US$284.4m and earnings per share (EPS) of US$0.26 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 85% to US$6.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, ARC Document Solutions' top line has shrunk approximately 7.8% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.6% per year. Although ARC Document Solutions' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ARC Document Solutions. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.