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Rexford Industrial Realty, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

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·3 min read
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As you might know, Rexford Industrial Realty, Inc. (NYSE:REXR) recently reported its second-quarter numbers. Revenues were US$80m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.10 were also better than expected, beating analyst predictions by 16%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rexford Industrial Realty after the latest results.

View our latest analysis for Rexford Industrial Realty

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earnings-and-revenue-growth

Following the latest results, Rexford Industrial Realty's dual analysts are now forecasting revenues of US$320.0m in 2020. This would be a reasonable 6.6% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to dive 37% to US$0.29 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$319.7m and earnings per share (EPS) of US$0.22 in 2020. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.

The consensus price target was unchanged at US$44.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Rexford Industrial Realty's revenue growth is expected to slow, with forecast 6.6% increase next year well below the historical 25%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% next year. So it's pretty clear that, while Rexford Industrial Realty's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Rexford Industrial Realty's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Rexford Industrial Realty (1 doesn't sit too well with us!) that you need to be mindful 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.