Yahoo Finance Earnings Miss: Broadstone Net Lease, Inc. Missed EPS By 17% And Analysts Are Revising Their Forecasts
Last week, you might have seen that Broadstone Net Lease, Inc. (NYSE:BNL) released its full-year result to the market. The early response was not positive, with shares down 5.4% to US$14.79 in the past week. Revenues were in line with forecasts, at US$443m, although statutory earnings per share came in 17% below what the analysts expected, at US$0.83 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Broadstone Net Lease
Following last week's earnings report, Broadstone Net Lease's five analysts are forecasting 2024 revenues to be US$434.5m, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 15% to US$0.70 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$443.9m and earnings per share (EPS) of US$0.74 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
The analysts made no major changes to their price target of US$19.17, suggesting the downgrades are not expected to have a long-term impact on Broadstone Net Lease's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Broadstone Net Lease, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$18.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Broadstone Net Lease is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$19.17, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Broadstone Net Lease analysts - going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Broadstone Net Lease (at least 2 which are concerning) , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
