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Melcor Real Estate Investment Trust Just Released Its Full-Year Earnings: Here's What Analysts Think

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Last week, you might have seen that Melcor Real Estate Investment Trust (TSE:MR.UN) released its yearly result to the market. The early response was not positive, with shares down 4.3% to CA$7.75 in the past week. It was an okay report, and revenues came in at CA$71m, approximately in line with analyst estimates leading up to the results announcement. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Melcor Real Estate Investment Trust after the latest results.

See our latest analysis for Melcor Real Estate Investment Trust

TSX:MR.UN Past and Future Earnings, March 9th 2020
TSX:MR.UN Past and Future Earnings, March 9th 2020

After the latest results, the sole analyst covering Melcor Real Estate Investment Trust are now predicting revenues of CA$79.1m in 2020. If met, this would reflect a solid 11% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of CA$78.0m in 2020, and did not provide an EPS estimate. From what we can see of these results, it looks like Melcor Real Estate Investment Trust is performing in line with analyst expectations. The analysts we track have all updated their numbers following the results, and there were no major changes to their forecasts for next year.

We'd also point out that that analysts have made no major changes to their price target of CA$7.94.

Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Analysts are definitely expecting Melcor Real Estate Investment Trust's growth to accelerate, with the forecast 11% growth ranking favourably alongside historical growth of 5.5% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 3.7% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Melcor Real Estate Investment Trust to grow faster 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. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at CA$7.94, with the latest estimates not enough to have an impact on analysts' estimated valuations.

One Melcor Real Estate Investment Trust broker/analyst has provided estimates out to 2021, which can be seen for free on our platform here.

You can also view our analysis of Melcor Real Estate Investment Trust's balance sheet, and whether we think Melcor Real Estate Investment Trust is carrying too much debt, for free on our 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.

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. Thank you for reading.