As you might know, Canadian Apartment Properties Real Estate Investment Trust (TSE:CAR.UN) recently reported its quarterly numbers. It looks like a credible result overall - although revenues of CA$199m were what analysts expected, Canadian Apartment Properties Real Estate Investment Trust surprised by delivering a profit of CA$8.45 per share, an impressive 104% above what analysts had forecast. 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. We thought readers would find it interesting to see analysts' latest post-earnings forecasts for next year.
Taking into account the latest results, the latest consensus from Canadian Apartment Properties Real Estate Investment Trust's five analysts is for revenues of CA$814.0m in 2020, which would reflect a solid 8.7% improvement in sales compared to the last 12 months. Yet prior to the latest earnings, analysts had been forecasting revenues of CA$804.8m and earnings per share (EPS) of CA$3.43 in 2020. Overall, while analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important after these latest results.
We'd also point out that that analysts have made no major changes to their price target of CA$55.83. 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. Currently, the most bullish analyst values Canadian Apartment Properties Real Estate Investment Trust at CA$61.50 per share, while the most bearish prices it at CA$43.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We can infer from the latest estimates that analysts are expecting a continuation of Canadian Apartment Properties Real Estate Investment Trust's historical trends, as next year's forecast 8.7% revenue growth is roughly in line with 8.1% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.9% per year. So it's pretty clear that Canadian Apartment Properties Real Estate Investment Trust is forecast to grow substantially faster than its market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at CA$55.83, with the latest estimates not enough to have an impact on analysts' estimated valuations.
We have estimates for Canadian Apartment Properties Real Estate Investment Trust from its five analysts , and you can see them free on our platform here.
You can also see whether Canadian Apartment Properties Real Estate Investment Trust is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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