Yahoo Finance What Should You Know About The Future Of Brixmor Property Group Inc’s (NYSE:BRX)?
Based on Brixmor Property Group Inc’s (NYSE:BRX) earnings update in June 2018, the consensus outlook from analysts appear bearish, with profits predicted to drop by -11.4% next year against the past 5-year average growth rate of 49.7%. Currently with a railing-twelve-month profit of US$294.5m, the consensus growth rate suggests that earnings will drop to US$261.0m by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Brixmor Property Group
Exciting times ahead?
The 7 analysts covering BRX view its longer term outlook with a negative sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of -2.7% based on the most recent earnings level of US$300.2m to the final forecast of US$256.7m by 2021. This leads to an EPS of $0.85 in the final year of projections relative to the current EPS of $0.98. The main reason for BRX’s earnings contraction is top-line expansion of 0.006%, which is predicted to lag cost growth leading up to 2021. Furthermore, the current 23.4% margin is expected to contract to 20.5% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Brixmor Property Group, there are three pertinent aspects you should further research:
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 Brixmor Property Group 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 Brixmor Property Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Brixmor Property Group? 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.
