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Agree Realty Corporation (NYSE:ADC) just released its first-quarter report and things are looking bullish. Agree Realty beat earnings, with revenues hitting US$78m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Agree Realty's six analysts is for revenues of US$331.0m in 2021, which would reflect a huge 22% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$1.75, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$329.9m and earnings per share (EPS) of US$1.75 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$76.27, suggesting that the company has met expectations in its recent result.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Agree Realty's growth to accelerate, with the forecast 31% annualised growth to the end of 2021 ranking favourably alongside historical growth of 25% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Agree Realty is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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. The consensus price target held steady at US$76.27, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Agree Realty analysts - going out to 2025, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Agree Realty (at least 1 which doesn't sit too well with us) , and understanding these should be part of your investment process.
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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