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What Should We Expect From EPR Properties's (NYSE:EPR) Earnings Over The Next Year?

Simply Wall St

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Looking at EPR Properties's (NYSE:EPR) earnings update in December 2018, the consensus outlook from analysts appear somewhat bearish, as a 1.5% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 11%. By 2020, we can expect EPR Properties’s bottom line to reach US$247m, a jump from the current trailing-twelve-month of US$243m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for EPR Properties in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

Check out our latest analysis for EPR Properties

Can we expect EPR Properties to keep growing?

Over the next three years, it seems the consensus view of the 3 analysts covering EPR is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of EPR's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NYSE:EPR Past and Future Earnings, May 1st 2019

From the current net income level of US$243m and the final forecast of US$263m by 2022, the annual rate of growth for EPR’s earnings is 1.6%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of $3.22 in the final year of forecast compared to the current $3.27 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 39% to 36% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For EPR Properties, there are three key factors 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 EPR Properties 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 EPR Properties is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EPR Properties? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.