Yahoo Finance Rexford Industrial Realty, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Rexford Industrial Realty, Inc. (NYSE:REXR) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to US$39.19 in the week after its latest first-quarter results. It looks like a credible result overall - although revenues of US$78m were what the analysts expected, Rexford Industrial Realty surprised by delivering a (statutory) profit of US$0.09 per share, an impressive 20% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Rexford Industrial Realty
Following the latest results, Rexford Industrial Realty's two analysts are now forecasting revenues of US$325.6m in 2020. This would be a decent 14% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to dive 55% to US$0.22 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$325.6m and earnings per share (EPS) of US$0.28 in 2020. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$45.43, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Rexford Industrial Realty's revenue growth will slow down substantially, with revenues next year expected to grow 14%, compared to a historical growth rate of 26% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% next year. So it's pretty clear that, while Rexford Industrial Realty's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
Even so, be aware that Rexford Industrial Realty is showing 5 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
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