Extra Space Storage Inc (NYSE:EXR): What’s The Analyst Consensus Outlook?
Extra Space Storage Inc’s (NYSE:EXR) latest earnings announcement in December 2017 confirmed that the company experienced a robust tailwind, leading to a double-digit earnings growth of 30.85%. Today I want to provide a brief commentary on how market analysts predict Extrace Storage’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for Extrace Storage
Market analysts’ prospects for the coming year seems pessimistic, with earnings reducing by a double-digit -19.21%. Over the medium term, earnings are expected to continue to be below today’s level, with a decline of -17.64% in 2020, eventually reaching US$393.71M in 2021.
Although it is informative knowing the growth year by year relative to today’s figure, it may be more valuable to evaluate the rate at which the company is rising or falling on average every year. The advantage of this technique is that we can get a bigger picture of the direction of Extrace Storage’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -5.38%. This means that, we can expect Extrace Storage will chip away at a rate of -5.38% every year for the next couple of years.
Next Steps:
For Extrace Storage, I’ve compiled three relevant factors you should further research:
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.
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.
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.