DCT Industrial Trust Inc’s (NYSE:DCT) earnings per share contraction is expected to be a double-digit -11.61% over the next three years. Presently, with an EPS of $0.998, we can expect an upcoming EPS of $0.882. To assess the reasonability of DCT’s earnings per share contraction, we should look at its most recent growth rate delivered. View our latest analysis for DCT Industrial Trust
How is DCT Industrial Trust going to perform in the future?
There are dark clouds over DCT Industrial Trust’s potential over the next couple of years. Analysts covering the company are expecting the EPS to drop down to $0.882, a significant decline from previous levels of around $0.998. In the same period revenue is predicted to grow from $418M to $498M and net income is predicted to dip from $91M to $81M in the next couple of years. However, margins are on track to be a respectable 16.82% in the future.
Is the contraction built on solid basis?
The past can be an insightful 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. DCT is expected to face a substantial shift from a previous double-digit growth of 270.80%, 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 DCT, incurring higher expense growth than revenue.
For DCT, I’ve put together three essential aspects you should further research:
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 DCT 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 DCT is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DCT? 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.