Yahoo Finance Kimco Realty Corporation Just Recorded A 5.9% EPS Beat: Here's What Analysts Are Forecasting Next
Kimco Realty Corporation (NYSE:KIM) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$1.2b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were US$0.80, 5.9% ahead of estimates. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Kimco Realty after the latest results.
See our latest analysis for Kimco Realty
Following last week's earnings report, Kimco Realty's 14 analysts are forecasting 2020 revenues to be US$1.15b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 5.7% to US$0.75 in the same period. In the lead-up to this report, analysts had been modelling revenues of US$1.14b and earnings per share (EPS) of US$0.75 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$20.45, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Kimco Realty analyst has a price target of US$24.00 per share, while the most pessimistic values it at US$18.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
In addition, we can look to Kimco Realty's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.8% a significant reduction from annual growth of 1.5% 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 5.1% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Kimco Realty to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Kimco Realty's revenues are expected to perform worse than the wider market. The consensus price target held steady at US$20.45, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Kimco Realty going out to 2022, and you can see them free on our platform here.
You can also view our analysis of Kimco Realty's balance sheet, and whether we think Kimco Realty is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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