Yahoo Finance Healthcare Realty Trust Incorporated Just Missed Earnings - But Analysts Have Updated Their Models
As you might know, Healthcare Realty Trust Incorporated (NYSE:HR) recently reported its third-quarter numbers. Sales of US$306m surpassed estimates by 2.1%, although statutory earnings per share missed badly, coming in 40% below expectations at US$0.08 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Healthcare Realty Trust after the latest results.
See our latest analysis for Healthcare Realty Trust
After the latest results, the three analysts covering Healthcare Realty Trust are now predicting revenues of US$1.37b in 2023. If met, this would reflect a huge 88% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 129% to US$0.58. In the lead-up to this report, the analysts had been modelling revenues of US$1.35b and earnings per share (EPS) of US$0.52 in 2023. So it seems there's been a definite increase in optimism about Healthcare Realty Trust's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$27.00, suggesting that the forecast performance does not have a long term impact on the company'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. Currently, the most bullish analyst values Healthcare Realty Trust at US$33.00 per share, while the most bearish prices it at US$21.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Healthcare Realty Trust's rate of growth is expected to accelerate meaningfully, with the forecast 66% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Healthcare Realty Trust to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Healthcare Realty Trust's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$27.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Healthcare Realty Trust going out to 2024, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 4 warning signs for Healthcare Realty Trust (of which 2 are a bit concerning!) you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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