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Will Corporate Office Properties Trust's (NYSE:OFC) Earnings Grow In The Next 12 Months?

Simply Wall St

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Since Corporate Office Properties Trust (NYSE:OFC) released its earnings in March 2019, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 24% in the upcoming year against the past 5-year average growth rate of 9.9%. By 2020, we can expect Corporate Office Properties Trust’s bottom line to reach US$89m, a jump from the current trailing-twelve-month of US$72m. Below is a brief commentary on the longer term outlook the market has for Corporate Office Properties Trust. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for Corporate Office Properties Trust

How will Corporate Office Properties Trust perform in the near future?

The longer term expectations from the 7 analysts of OFC is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of OFC'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:OFC Past and Future Earnings, July 1st 2019

From the current net income level of US$72m and the final forecast of US$91m by 2022, the annual rate of growth for OFC’s earnings is 2.0%. This leads to an EPS of $0.90 in the final year of projections relative to the current EPS of $0.69. By the end of 2022, analysts are expecting earnings to outpace revenue, and margins to expand from the current 12% to 14%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Corporate Office Properties Trust, I've compiled three pertinent aspects 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 Corporate Office Properties 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 Corporate Office Properties Trust is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Corporate Office Properties 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!

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.

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. Thank you for reading.