Earnings Beat: Getty Realty Corp. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
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As you might know, Getty Realty Corp. (NYSE:GTY) recently reported its yearly numbers. The result was positive overall - although revenues of US$155m were in line with what the analysts predicted, Getty Realty surprised by delivering a statutory profit of US$1.37 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Getty Realty
After the latest results, the four analysts covering Getty Realty are now predicting revenues of US$171.2m in 2022. If met, this would reflect a notable 10% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to sink 13% to US$1.17 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$165.9m and earnings per share (EPS) of US$1.18 in 2022. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$33.93, implying that the uplift in sales is not expected to greatly contribute to Getty Realty's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Getty Realty analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$29.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Getty Realty's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Getty Realty is expected to grow much faster than its industry.