Yahoo Finance What Are Analysts Expecting From Charter Hall Retail Real Estate Investment Trust (ASX:CQR) In Next 12 Months?
In June 2018, Charter Hall Retail Real Estate Investment Trust (ASX:CQR) released its earnings update. Generally, analyst consensus outlook seem pessimistic, with earnings expected to decline by -5.8% in the upcoming year compared with the past 5-year average growth rate of 12%. Currently with a railing-twelve-month profit of AU$146m, the consensus growth rate suggests that earnings will drop to AU$138m by 2019. Below is a brief commentary on the longer term outlook the market has for Charter Hall Retail Real Estate Investment Trust. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Charter Hall Retail Real Estate Investment Trust
How will Charter Hall Retail Real Estate Investment Trust perform in the near future?
The longer term view from the 8 analysts covering CQR is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of CQR’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2021, CQR’s earnings should reach AU$156m, from current levels of AU$146m, resulting in an annual growth rate of 2.2%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of A$0.31 in the final year of forecast compared to the current A$0.36 EPS today. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 60%, which is expected to expand to 88% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Charter Hall Retail Real Estate Investment Trust, I’ve put together three important factors you should look at:
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.
Valuation: What is Charter Hall Retail Real Estate Investment Trust 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 Charter Hall Retail Real Estate Investment Trust is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Charter Hall Retail Real Estate Investment Trust? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
