Yahoo Finance What Are Analysts Saying About Great Portland Estates Plc’s (LON:GPOR) Future?
In March 2018, Great Portland Estates Plc (LSE:GPOR) released its most recent earnings update. Generally, analyst consensus outlook appear bearish, as Great Portland Estates is expected to become loss-making next year. Though this pessimism is not unsubstantiated given the negative earnings growth rate over the past five years on average. With net income at current levels of UK£70.30M, the consensus growth rate suggests that earnings will decline to -UK£15.12M by 2019. Below is a brief commentary around Great Portland Estates’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here. See our latest analysis for Great Portland Estates
How will Great Portland Estates perform in the near future?
The longer term view from the 7 analysts covering GPOR 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. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of GPOR’s earnings growth over these next few years.
From the current net income level of UK£70.30M and the final forecast of UK£141.58M by 2021, the annual rate of growth for GPOR’s earnings is 27.45%. This leads to an EPS of £0.24 in the final year of projections relative to the current EPS of £0.22. The bottom-line growth seems to be caused by cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 18.44%, which is expected to expand to 166.21% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Great Portland Estates, I’ve compiled three essential factors you should further research:
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.
