The annual results for Urstadt Biddle Properties Inc. (NYSE:UBA) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of US$139m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 45% to hit US$0.58 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Taking into account the latest results, Urstadt Biddle Properties's dual analysts currently expect revenues in 2020 to be US$140.3m, approximately in line with the last 12 months. Statutory earnings per share are expected to surge 102% to US$1.15. Yet prior to the latest earnings, analysts had been forecasting revenues of US$140.3m and earnings per share (EPS) of US$1.15 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$23.67, suggesting that the company has met expectations in its recent result.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. It's pretty clear that analysts expect Urstadt Biddle Properties's revenue growth will slow down substantially, with revenues next year expected to grow 1.2%, compared to a historical growth rate of 5.3% over the past five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 5.4% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Urstadt Biddle Properties to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at US$23.67, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Urstadt Biddle Properties going out as far as 2020, and you can see them free on our platform here.
You can also see whether Urstadt Biddle Properties is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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