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Gladstone Commercial Corporation (NASDAQ:GOOD) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Gladstone Commercial reported in line with analyst predictions, delivering revenues of US$38m and statutory earnings per share of US$0.04, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following last week's earnings report, Gladstone Commercial's five analysts are forecasting 2025 revenues to be US$152.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to nosedive 35% to US$0.18 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$151.5m and earnings per share (EPS) of US$0.23 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
View our latest analysis for Gladstone Commercial
The consensus price target held steady at US$16.60, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Gladstone Commercial, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$16.00 per share. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Gladstone Commercial's revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2025 being well below the historical 3.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Gladstone Commercial is also expected to grow slower than other industry participants.