The yearly results for Boston Properties, Inc. (NYSE:BXP) were released last week, making it a good time to revisit its performance. Boston Properties reported US$2.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.30 beat expectations, being 2.7% higher than what analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Taking into account the latest results, the latest consensus from Boston Properties's six analysts is for revenues of US$3.07b in 2020, which would reflect a satisfactory 4.2% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to ascend 12% to US$3.70. Before this earnings report, analysts had been forecasting revenues of US$3.09b and earnings per share (EPS) of US$3.58 in 2020. So the consensus seems to have become somewhat more optimistic on Boston Properties's earnings potential following these results.
There's been no major changes to the consensus price target of US$148, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Boston Properties, with the most bullish analyst valuing it at US$159 and the most bearish at US$130 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Boston Properties's past performance and to peers in the same market. Analysts are definitely expecting Boston Properties's growth to accelerate, with the forecast 4.2% growth ranking favourably alongside historical growth of 3.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.1% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, analysts also expect Boston Properties to grow slower than the wider market.
The Bottom Line
The most important thing to take away from this is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Boston Properties following these results. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Boston Properties's revenues are expected to perform worse than the wider market. The consensus price target held steady at US$148, with the latest estimates not enough to have an impact on analysts' estimated valuations.
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 Boston Properties going out to 2024, and you can see them free on our platform here..
You can also see whether Boston Properties is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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