Cohen & Steers, Inc. (NYSE:CNS) just released its latest quarterly results and things are looking bullish. Cohen & Steers beat earnings, with revenues hitting US$111m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 10%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus, from the four analysts covering Cohen & Steers, is for revenues of US$465.3m in 2021, which would reflect a substantial 36% reduction in Cohen & Steers' sales over the past 12 months. Statutory earnings per share are expected to crater 33% to US$2.78 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$445.0m and earnings per share (EPS) of US$2.76 in 2021. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$65.00, implying that the uplift in sales is not expected to greatly contribute to Cohen & Steers's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cohen & Steers, with the most bullish analyst valuing it at US$70.00 and the most bearish at US$60.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cohen & Steers' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 36%, a significant reduction from annual growth of 9.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Cohen & Steers is expected to lag the wider industry.
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. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cohen & Steers analysts - going out to 2022, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Cohen & Steers that you need to take into consideration.
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.
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