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PS Business Parks, Inc. (NYSE:PSB) Analysts Just Slashed This Year's Revenue Estimates By 17%

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·2 min read
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Today is shaping up negative for PS Business Parks, Inc. (NYSE:PSB) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from dual analysts covering PS Business Parks is for revenues of US$305m in 2021, implying a disturbing 28% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$369m in 2021. It looks like forecasts have become a fair bit less optimistic on PS Business Parks, given the substantial drop in revenue estimates.

View our latest analysis for PS Business Parks

earnings-and-revenue-growth
earnings-and-revenue-growth

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 49% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 2.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PS Business Parks is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for PS Business Parks this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on PS Business Parks after today.

Want more information? At least one of PS Business Parks' dual analysts has provided estimates out to 2023, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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