Extra Space Storage Inc (EXR): Earnings Expected To Remain Subdued
Analysts covering Extra Space Storage Inc (NYSE:EXR) are predicting small, negative earnings per share drop of -1.81% over the following three years. With the recent EPS being $2.938, expected contraction will drag down the upcoming EPS to $2.885. Today I will look at the latest data in order to investigate whether this negative future growth rate is plausible. View our latest analysis for Extra Space Storage
How is EXR going to perform in the future?
The bad news for investors of EXR is that a drop in earnings is on the cards. Analysts covering the company are expecting the EPS to drop down to $2.885, a significant decline from previous levels of around $2.938. During the same time we will see the revenue reduce slightly from $1,071M to $1,057M and profit is predicted to decline from $369M to $362M in the next couple of years. But, at this level of revenue and earnings, margins are expected to be extremely healthy.
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 relatively justified or whether the negative sentiment is too pessimistic. EXR’s earnings growth is expected to exhibit negative momentum as analysts expect the triple-digit earnings growth in the previous couple of years to deteriorate into negative territory. As a well-established company, EXR could be exhibiting signs of potential market share loss or obsolete products to larger negative growth over time.
Next Steps:
For EXR, I’ve put together three pertinent 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 EXR 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 EXR is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EXR? 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.
