The latest earnings release Easterly Government Properties Inc’s (NYSE:DEA) announced in December 2017 suggested that the business benefited from a strong tailwind, eventuating to a double-digit earnings growth of 12.35%. Below, I’ve presented key growth figures on how market analysts predict Easterly Government Properties’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Easterly Government Properties
Market analysts’ consensus outlook for next year seems buoyant, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching US$23.76M in 2021.
Although it’s helpful to understand the growth rate year by year relative to today’s level, it may be more insightful evaluating the rate at which the company is moving every year, on average. The advantage of this method is that we can get a bigger picture of the direction of Easterly Government Properties’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 33.51%. This means, we can anticipate Easterly Government Properties will grow its earnings by 33.51% every year for the next couple of years.
For Easterly Government Properties, I’ve put together three key 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 DEA 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 DEA is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DEA? 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 pass 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.