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CTO Realty Growth, Inc. (NYSE:CTO) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

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The quarterly results for CTO Realty Growth, Inc. (NYSE:CTO) were released last week, making it a good time to revisit its performance. Revenues beat expectations, coming in 13% ahead of forecasts, and the company broke even on a statutory earnings per share (EPS) level. 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 CTO Realty Growth

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

Taking into account the latest results, the three analysts covering CTO Realty Growth provided consensus estimates of US$72.2m revenue in 2022, which would reflect a noticeable 7.4% decline on its sales over the past 12 months. The company is forecast to report a statutory loss of US$0.055 in 2022, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$70.6m and losses of US$0.055 per share in 2022.

The consensus price target held steady at US$23.89despite the upgrade to revenue forecasts and ongoing losses. The analysts seems to think the business is otherwise performing roughly in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CTO Realty Growth analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$21.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past five years, revenues have declined around 1.6% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 14% decline in revenue until the end of 2022. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.1% annually. So while a broad number of companies are forecast to grow, unfortunately CTO Realty Growth is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple CTO Realty Growth analysts - going out to 2023, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 6 warning signs for CTO Realty Growth (2 shouldn't be ignored!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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