Yahoo Finance Mapletree North Asia Commercial Trust Just Missed EPS By 60%: Here's What Analysts Think Will Happen Next
As you might know, Mapletree North Asia Commercial Trust (SGX:RW0U) last week released its latest quarterly, and things did not turn out so great for shareholders. Analysts look to have been far too optimistic in the lead-up to these results, with revenues of (S$67m) coming in 36% below what analysts had expected. Statutory earnings per share of S$0.008) fell 60% short. 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. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
View our latest analysis for Mapletree North Asia Commercial Trust
After the latest results, the six analysts covering Mapletree North Asia Commercial Trust are now predicting revenues of S$406.7m in 2021. If met, this would reflect a modest 6.6% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to crater 73% to S$0.052 in the same period. Before this earnings report, analysts had been forecasting revenues of S$407.5m and earnings per share (EPS) of S$0.052 in 2021. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at S$1.28. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Mapletree North Asia Commercial Trust at S$1.36 per share, while the most bearish prices it at S$1.16. 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.
It can also be useful to step back and take a broader view of how analyst forecasts compare to Mapletree North Asia Commercial Trust's performance in recent years. We can infer from the latest estimates that analysts are expecting a continuation of Mapletree North Asia Commercial Trust's historical trends, as next year's forecast 6.6% revenue growth is roughly in line with 7.4% annual revenue growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 6.3% next year. It's clear that while Mapletree North Asia Commercial Trust's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the market itself.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. The consensus price target held steady at S$1.28, 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 estimates - from multiple Mapletree North Asia Commercial Trust analysts - going out to 2022, and you can see them free on our platform here.
You can also see whether Mapletree North Asia Commercial Trust is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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