Yahoo Finance What Are Analysts Expecting From Great Portland Estates Plc (LON:GPOR) In The Year Ahead?
Based on Great Portland Estates Plc’s (LON:GPOR) earnings update in March 2018, analyst consensus outlook appear pessimistic, with earnings expected to decline by -7.45% in the upcoming year. Though this outlook is not unsubstantiated given the 5-year track record of negative growth of -6.97%. With net income at current levels of UK£70.30m, the consensus growth rate suggests that earnings will decline to UK£65.06m by 2019. Below is a brief commentary on the longer term outlook the market has for Great Portland Estates. For those keen to understand more about other aspects of the company, you can research its fundamentals here. See our latest analysis for Great Portland Estates
How will Great Portland Estates perform in the near future?
The view from 7 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for GPOR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of UK£70.30m and the final forecast of UK£133.55m by 2021, the annual rate of growth for GPOR’s earnings is 19.34%. EPS reaches £0.24 in the final year of forecast compared to the current £0.22 EPS today. Growth in earnings appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. In 2021, GPOR’s profit margin will have expanded from 18.44% to 160.12%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Great Portland Estates, I’ve put together three fundamental aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Great Portland Estates worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Great Portland Estates is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Great Portland Estates? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
