What Are Analysts Saying About Gaming and Leisure Properties, Inc.’s (NASDAQ:GLPI) Earnings Trajectory?
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Gaming and Leisure Properties, Inc.’s (NASDAQ:GLPI) most recent earnings update in December 2018 suggested that the company faced a major headwind with earnings deteriorating by -11%. Investors may find it useful to understand how market analysts perceive Gaming and Leisure Properties’s earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Gaming and Leisure Properties
Analysts’ expectations for next year seems positive, with earnings climbing by a robust 30%. This growth seems to continue into the following year with rates reaching double digit 40% compared to today’s earnings, and finally hitting US$533m by 2022.
Even though it’s useful to understand the growth each year relative to today’s level, it may be more insightful to analyze the rate at which the business is moving every year, on average. The pro of this technique is that we can get a better picture of the direction of Gaming and Leisure Properties’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 15%. This means, we can anticipate Gaming and Leisure Properties will grow its earnings by 15% every year for the next couple of years.
Next Steps:
For Gaming and Leisure Properties, there are three fundamental factors you should further examine:
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 GLPI 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 GLPI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GLPI? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.