Earnings Beat: One Liberty Properties, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
It's been a good week for One Liberty Properties, Inc. (NYSE:OLP) shareholders, because the company has just released its latest full-year results, and the shares gained 9.5% to US$22.32. Revenues were US$90m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.38, an impressive 70% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for One Liberty Properties
Following last week's earnings report, One Liberty Properties' twin analysts are forecasting 2024 revenues to be US$89.3m, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 59% to US$0.55 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$90.8m and earnings per share (EPS) of US$0.52 in 2024. So the consensus seems to have become somewhat more optimistic on One Liberty Properties' earnings potential following these results.
The consensus price target was unchanged at US$22.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 0.4% annualised decline to the end of 2024. That is a notable change from historical growth of 2.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. It's pretty clear that One Liberty Properties' revenues are expected to perform substantially worse 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 One Liberty Properties' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 2025, which can be seen for free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with One Liberty Properties (at least 2 which make us uncomfortable) , and understanding them should be part of your investment process.
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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.
