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Here's What Analysts Are Forecasting For Slate Office REIT After Its Annual Results

Simply Wall St

Last week, you might have seen that Slate Office REIT (TSE:SOT.UN) released its annual result to the market. The early response was not positive, with shares down 6.4% to CA$5.30 in the past week. It was an okay result overall, with revenues coming in at CA$216m, roughly what analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.

Check out our latest analysis for Slate Office REIT

TSX:SOT.UN Past and Future Earnings, March 4th 2020
TSX:SOT.UN Past and Future Earnings, March 4th 2020

Taking into account the latest results, the current consensus, from the two analysts covering Slate Office REIT, is for revenues of CA$206.2m in 2020, which would reflect a perceptible 4.3% reduction in Slate Office REIT's sales over the past 12 months. Before this earnings result, analysts had predicted CA$203.2m revenue in 2020, although there was no accompanying EPS estimate. It looks like the latest results have met analyst expectations and confirmed that the business is performing in line with expectations, given there's been no real changes in the new revenue estimates.

There's been no real change to the consensus price target of CA$6.18, with Slate Office REITseemingly executing in line with expectations.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 4.3% a significant reduction from annual growth of 28% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 4.0% annually for the foreseeable future. It's pretty clear that Slate Office REIT's revenues are expected to perform substantially worse than the wider market.

The Bottom Line

The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at CA$6.18, with the latest estimates not enough to have an impact on analysts' estimated valuations.

We have estimates for Slate Office REIT from its two analysts , and you can see them free on our platform here.

It might also be worth considering whether Slate Office REIT's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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.

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