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CorEnergy Infrastructure Trust, Inc. Released Earnings Last Week And Analysts Lifted Their Price Target To US$49.50

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·3 min read
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There's been a notable change in appetite for CorEnergy Infrastructure Trust, Inc. (NYSE:CORR) shares in the week since its yearly report, with the stock down 19% to US$36.29. The statutory results were mixed overall, with revenues of US$86m in line with analyst forecasts, but losses of US$0.40 per share, some 7.6% larger than analysts were predicting. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for CorEnergy Infrastructure Trust

NYSE:CORR Past and Future Earnings, February 28th 2020
NYSE:CORR Past and Future Earnings, February 28th 2020

Taking into account the latest results, the current consensus, from the sole analyst covering CorEnergy Infrastructure Trust, is for revenues of US$83.1m in 2020, which would reflect a small 3.3% reduction in CorEnergy Infrastructure Trust's sales over the past 12 months. CorEnergy Infrastructure Trust is also expected to turn profitable, with statutory earnings of US$2.04 per share. Prior to the latest earnings, analysts were forecasting revenues of US$83.1m in 2020, and did not provide an EPS estimate. It looks like analysts are starting to apply closer scrutiny to CorEnergy Infrastructure Trust following these results. While they haven't made any changes to their revenue estimates, they began providing an earnings forecast for next year.

The consensus price target rose 22% to US$49.50, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Further, we can compare these estimates to past performance, and see how CorEnergy Infrastructure Trust forecasts compare to the wider market's forecast performance. These estimates imply that sales are expected to slow, with a forecast revenue decline of 3.3% a significant reduction from annual growth of 9.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 4.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect CorEnergy Infrastructure Trust to grow slower than the wider market.

The Bottom Line

The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that CorEnergy Infrastructure Trust's revenues are expected to perform worse than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for CorEnergy Infrastructure Trust going out as far as 2021, and you can see them free on our platform here.

It might also be worth considering whether CorEnergy Infrastructure Trust's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.