Kilroy Realty Corporation (NYSE:KRC) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
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It's been a good week for Kilroy Realty Corporation (NYSE:KRC) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.7% to US$54.18. It was a pretty mixed result, with revenues beating expectations to hit US$271m. Statutory earnings fell 2.4% short of analyst forecasts, reaching US$0.40 per share. 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.
View our latest analysis for Kilroy Realty
Following the latest results, Kilroy Realty's seven analysts are now forecasting revenues of US$1.06b in 2022. This would be a credible 3.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 6.7% to US$1.77. Before this earnings report, the analysts had been forecasting revenues of US$1.06b and earnings per share (EPS) of US$1.69 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$65.40, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kilroy Realty, with the most bullish analyst valuing it at US$91.00 and the most bearish at US$48.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Kilroy Realty'shistorical trends, as the 6.3% annualised revenue growth to the end of 2022 is roughly in line with the 7.8% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.1% per year. So although Kilroy Realty is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.