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Results: Terreno Realty Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

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Investors in Terreno Realty Corporation (NYSE:TRNO) had a good week, as its shares rose 6.3% to close at US$59.81 following the release of its third-quarter results. Revenues were US$47m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.33, an impressive 65% ahead of estimates. The 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Terreno Realty

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

Following the latest results, Terreno Realty's nine analysts are now forecasting revenues of US$205.0m in 2021. This would be a decent 12% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to dive 30% to US$0.84 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$204.7m and earnings per share (EPS) of US$0.85 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$64.50, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Terreno Realty, with the most bullish analyst valuing it at US$70.00 and the most bearish at US$58.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Terreno Realty'shistorical trends, as next year's 12% revenue growth is roughly in line with 14% annual revenue 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 6.0% per year. So although Terreno Realty is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$64.50, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Terreno Realty going out to 2023, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Terreno Realty (1 doesn't sit too well with us) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.