Tanger Factory Outlet Centers Inc (SKT): Should The Future Outlook Worry You?
Analysts covering Tanger Factory Outlet Centers Inc (NYSE:SKT) are predicting double-digit earnings per share contraction of -30.15% over the following three years. Presently, with an EPS of $1.506, we can expect an upcoming EPS of $1.052. To assess the reasonability of SKT’s earnings per share contraction, we should look at its most recent growth rate delivered. See our latest analysis for SKT
Adverse times ahead
The bad news for investors of SKT is that a drop in earnings is on the cards. Analysts are predicting the earnings to slide down to $1.052 in the three year’s time from previous levels of around $1.506. This would be a decline of -30.15%, so it will be an interesting ride. In the same period and profits (net income) are predicted to decline from $143M to $100M in the next couple of years. Furthermore, margins look rather unappealing at the current levels of revenue and earnings.
Is this similar growth to the past?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is relatively justified or whether the negative sentiment is too pessimistic. SKT is expected to face a significant change from a previous double-digit growth of 27.30%, over the last five years, to a forecast double-digit decline by analysts. This is highly unencouraging and may be a sign of an investment period for SKT, incurring higher expense growth than revenue.
Next Steps:
For SKT, there are three fundamental factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is SKT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SKT is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SKT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
