Will Macerich Company’s (MAC) Earnings Grow In Next 12 Months?
Macerich Company (NYSE:MAC) is expected to deliver an underwhelming negative -27.55% in earnings growth per share over the next three years. At a current EPS of $1.05, this adverse movement means shareholders can expect an impending EPS of $0.761. To determine whether this negative growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest analysis for Macerich
How is MAC going to perform in the future?
The bad news for investors of MAC is that a drop in earnings is on the cards. Analysts are predicting the earnings to slide down to $0.761 in the three year’s time from previous levels of around $1.05. This would be a decline of -27.55%, so it will be an interesting ride. In the same period net income is predicted to drop from $150M to $108M in the next couple of years. Furthermore, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the contraction
The past can be an insightful 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. MAC is expected to face a significant change from a previous double-digit growth of 101.77%, over the last five years, to a forecast double-digit decline by analysts. This is highly pessimistic and may be a sign of an investment period for MAC, incurring higher expense growth than revenue.
Next Steps:
For MAC, there are three important 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 MAC 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 MAC is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MAC? 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.
