Yahoo Finance What Do Analysts Think About Macerich Company’s (NYSE:MAC) Earnings Trajectory?
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In December 2018, Macerich Company (NYSE:MAC) announced its most recent earnings update, which suggested that the business experienced a major headwind with earnings declining by -59%. Investors may find it useful to understand how market analysts view Macerich’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Macerich
Analysts’ outlook for this coming year seems pessimistic, with earnings decreasing by a double-digit -33%. However, the following year seems to show a complete contrast, with expected earnings growth rates reaching a double digit 21% compared to today’s level, before plateauing off in 2022.
Although it’s informative understanding the growth each year relative to today’s level, it may be more valuable to evaluate the rate at which the business is moving on average every year. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Macerich’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 11%. This means that, we can presume Macerich will grow its earnings by 11% every year for the next few years.
Next Steps:
For Macerich, I’ve compiled three essential factors you should further examine:
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 MAC 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 MAC is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MAC? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
