Earnings Update: Global Net Lease, Inc. (NYSE:GNL) Just Reported And Analysts Are Boosting Their Estimates
Shareholders might have noticed that Global Net Lease, Inc. (NYSE:GNL) filed its yearly result this time last week. The early response was not positive, with shares down 4.8% to US$7.21 in the past week. Revenues of US$515m beat expectations by a respectable 8.6%, although statutory losses per share increased. Global Net Lease lost US$1.71, which was 53% more than what the analysts had included in their models. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Global Net Lease
Taking into account the latest results, the most recent consensus for Global Net Lease from six analysts is for revenues of US$826.3m in 2024. If met, it would imply a major 60% increase on its revenue over the past 12 months. Global Net Lease is also expected to turn profitable, with statutory earnings of US$0.41 per share. Before this earnings report, the analysts had been forecasting revenues of US$623.3m and earnings per share (EPS) of US$0.16 in 2024. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$11.70, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic Global Net Lease analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Global Net Lease's growth to accelerate, with the forecast 60% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Global Net Lease is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Global Net Lease following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$11.70, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Global Net Lease going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Global Net Lease .
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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.
