Yahoo Finance US$4.45: That's What Analysts Think Pennsylvania Real Estate Investment Trust Is Worth After Its Latest Results
One of the biggest stories of last week was how Pennsylvania Real Estate Investment Trust (NYSE:PEI) shares plunged 31% in the week since its latest annual results, closing yesterday at US$2.59. Results look to have been somewhat negative - revenue fell 5.0% short of analyst estimates at US$345m, although statutory losses were somewhat better. The per-share loss was US$0.52, 73% smaller than analysts were expecting prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
View our latest analysis for Pennsylvania Real Estate Investment Trust
Taking into account the latest results, the most recent consensus for Pennsylvania Real Estate Investment Trust from dual analysts is for revenues of US$368.7m in 2020, which is a credible 6.9% increase on its sales over the past 12 months. Statutory losses are expected to increase substantially, hitting US$0.46. per share. Before this earnings announcement, analysts had been forecasting revenues of US$368.7m and losses of US$0.56 per share in 2020. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that analysts have become more bullish after the latest result.
The consensus price target fell 7.3% to US$4.45 despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on analyst valuations.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. For example, we noticed that Pennsylvania Real Estate Investment Trust's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 6.9%, well above its historical decline of 5.0% a year over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 4.9% next year. So it looks like Pennsylvania Real Estate Investment Trust is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Pennsylvania Real Estate Investment Trust's future valuation.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
You can also see whether Pennsylvania Real Estate Investment Trust is carrying too much debt, and whether its balance sheet is healthy, 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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