U.S. Markets open in 2 hrs 42 mins

Broadstone Net Lease, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

·4 min read

Broadstone Net Lease, Inc. (NYSE:BNL) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to US$18.09 in the week after its latest yearly results. Revenues of US$322m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.44, missing estimates by 5.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Broadstone Net Lease

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

Taking into account the latest results, the most recent consensus for Broadstone Net Lease from six analysts is for revenues of US$345.1m in 2021 which, if met, would be a satisfactory 7.3% increase on its sales over the past 12 months. Per-share earnings are expected to ascend 18% to US$0.52. Before this earnings report, the analysts had been forecasting revenues of US$342.7m and earnings per share (EPS) of US$0.52 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$21.00. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Broadstone Net Lease, with the most bullish analyst valuing it at US$23.00 and the most bearish at US$20.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Broadstone Net Lease's revenue growth will slow down substantially, with revenues next year expected to grow 7.3%, compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% next year. So it's pretty clear that, while Broadstone Net Lease's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$21.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Broadstone Net Lease going out to 2025, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Broadstone Net Lease you should be aware of, and 1 of them is a bit concerning.

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.