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Analysts' Revenue Estimates For Global Medical REIT Inc. (NYSE:GMRE) Are Surging Higher

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·2 min read
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Shareholders in Global Medical REIT Inc. (NYSE:GMRE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Global Medical REIT will make substantially more sales than they'd previously expected.

After the upgrade, the six analysts covering Global Medical REIT are now predicting revenues of US$120m in 2021. If met, this would reflect a huge 21% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.31 in per-share earnings. Previously, the analysts had been modelling revenues of US$109m and earnings per share (EPS) of US$0.26 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Global Medical REIT

earnings-and-revenue-growth
earnings-and-revenue-growth

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Global Medical REIT's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Global Medical REIT's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 29% growth on an annualised basis. This is compared to a historical growth rate of 44% 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) 6.4% per year. Even after the forecast slowdown in growth, it seems obvious that Global Medical REIT is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Global Medical REIT.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Global Medical REIT going out to 2025, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.