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Will Federal Realty Investment Trust’s (NYSE:FRT) Earnings Grow Over The Next Few Years?

Simply Wall St

Federal Realty Investment Trust’s (NYSE:FRT) most recent earnings update in December 2018 signalled that the business faced a immense headwind with earnings falling by -19%. Below, I’ve presented key growth figures on how market analysts perceive Federal Realty Investment Trust’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

Check out our latest analysis for Federal Realty Investment Trust

Market analysts’ consensus outlook for the coming year seems rather subdued, with earnings rising by a single digit 2.1%. The following year doesn’t look much more exciting, though earnings does reach US$259m in 2022.

NYSE:FRT Past and Future Earnings, February 26th 2019

Although it’s useful to understand the growth year by year relative to today’s figure, it may be more valuable to estimate the rate at which the company is growing every year, on average. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Federal Realty Investment Trust’s earnings trajectory over time, fluctuate up and down. 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 4.7%. This means that, we can anticipate Federal Realty Investment Trust will grow its earnings by 4.7% every year for the next couple of years.

Next Steps:

For Federal Realty Investment Trust, I’ve put together three pertinent 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 FRT 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 FRT is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FRT? 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.