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It's been a good week for Life Storage, Inc. (NYSE:LSI) shareholders, because the company has just released its latest yearly results, and the shares gained 4.8% to US$85.61. Results overall were respectable, with statutory earnings of US$2.13 per share roughly in line with what the analysts had forecast. Revenues of US$622m came in 2.4% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Life Storage after the latest results.
Taking into account the latest results, the current consensus from Life Storage's four analysts is for revenues of US$672.0m in 2021, which would reflect a notable 8.1% increase on its sales over the past 12 months. Per-share earnings are expected to ascend 10% to US$2.35. Before this earnings report, the analysts had been forecasting revenues of US$672.0m and earnings per share (EPS) of US$2.34 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$87.73. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Life Storage, with the most bullish analyst valuing it at US$99.33 and the most bearish at US$75.00 per share. This is a very narrow spread of estimates, implying either that Life Storage is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 8.1%, in line with its 8.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So it's pretty clear that Life Storage is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Life Storage going out to 2025, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 4 warning signs for Life Storage (1 is concerning!) that you should be aware of.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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