What Should We Expect From CBL & Associates Properties Inc’s (CBL) Earnings Over The Next Year?
Analysts covering CBL & Associates Properties Inc (NYSE:CBL) are predicting high double-digit earnings per share decline of -51.63% over the following three years. At a current EPS of $0.588, this adverse movement means shareholders can expect an impending EPS of $0.284. To assess the reasonability of CBL’s earnings per share contraction, we should look at its most recent growth rate delivered. Check out our latest analysis for CBL & Associates Properties
What can we expect from CBL in the future?
There are dark clouds over CBL & Associates Properties’s potential over the next couple of years. Analysts are predicting the earnings to slide down to $0.284 in the three year’s time from previous levels of around $0.588. This would be a decline of -51.63%, so it will be an interesting ride. In the same period and net income is predicted to decline from $101M to $49M in the next couple of years. Furthermore, margins look rather unappealing at the current levels of revenue and earnings.
Is the contraction built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is too pessimistic or whether the company has consistently shown a negative trend. CBL is expected to face a substantial shift from a previous double-digit growth of 27.12%, over the last five years, to a forecast double-digit decline by analysts. This is highly pessimistic and may be a sign of an investment period for CBL, incurring higher expense growth than revenue.
Next Steps:
For CBL, there are three essential factors 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 CBL 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 CBL is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CBL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
