Here's What Analysts Are Forecasting For Slate Retail REIT After Its Yearly Results
Last week, you might have seen that Slate Retail REIT (TSE:SRT.UN) released its full-year result to the market. The early response was not positive, with shares down 4.6% to CA$12.76 in the past week. It was an okay report, and revenues came in at US$141m, approximately in line with analyst estimates leading up to the results announcement. Following the result, 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. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
See our latest analysis for Slate Retail REIT
Taking into account the latest results, the current consensus, from the dual analysts covering Slate Retail REIT, is for revenues of US$128.2m in 2020, which would reflect a nervous 9.3% reduction in Slate Retail REIT's sales over the past 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$132.9m in 2020, and did not provide an EPS estimate. The consensus seems a bit less optimistic overall, with the revenue forecasts following the latest results.
We'd also point out that that analysts have made no major changes to their price target of US$10.03.
In addition, we can look to Slate Retail REIT's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. We would highlight that sales are expected to reverse, with the forecast 9.3% revenue decline a notable change from historical growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 4.6% next year. It's pretty clear that Slate Retail REIT's revenues are expected to perform substantially worse than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
We have estimates for Slate Retail REIT from its dual analysts , and you can see them free on our platform here.
It might also be worth considering whether Slate Retail REIT's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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