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Will Blackstone Mortgage Trust Inc’s (NYSE:BXMT) Earnings Grow Over The Next Year?

In September 2018, Blackstone Mortgage Trust Inc (NYSE:BXMT) announced its earnings update. Overall, analyst forecasts seem fairly subdued, as a 10% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 27%. With trailing-twelve-month net income at current levels of US$218m, we should see this rise to US$240m in 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

Check out our latest analysis for Blackstone Mortgage Trust

How is Blackstone Mortgage Trust going to perform in the near future?

The view from 8 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of BXMT’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NYSE:BXMT Future Profit November 29th 18

By 2021, BXMT’s earnings should reach US$266m, from current levels of US$218m, resulting in an annual growth rate of 6.7%. EPS reaches $2.51 in the final year of forecast compared to the current $2.27 EPS today. Margins are currently sitting at 72%, approximately the same as previous years.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Blackstone Mortgage Trust, I’ve compiled three important factors you should further examine:

  1. 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.
  2. Valuation: What is Blackstone Mortgage Trust 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 Blackstone Mortgage Trust is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Blackstone Mortgage Trust? 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.