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EPR Properties Just Beat EPS By 141%: Here's What Analysts Think Will Happen Next

EPR Properties (NYSE:EPR) just released its latest quarterly results and things are looking bullish. EPR Properties delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$125m, some 11% above indicated. Statutory EPS were US$0.17, an impressive 141% ahead of forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for EPR Properties

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earnings-and-revenue-growth

Taking into account the latest results, the current consensus from EPR Properties' three analysts is for revenues of US$493.1m in 2021, which would reflect a huge 27% increase on its sales over the past 12 months. Earnings are expected to improve, with EPR Properties forecast to report a statutory profit of US$0.53 per share. Before this earnings report, the analysts had been forecasting revenues of US$458.9m and earnings per share (EPS) of US$0.51 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$53.38, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values EPR Properties at US$62.00 per share, while the most bearish prices it at US$43.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. For example, we noticed that EPR Properties' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 61% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.7% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.4% annually. So it looks like EPR Properties is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards EPR Properties following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$53.38, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple EPR Properties analysts - going out to 2022, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for EPR Properties (of which 1 makes us a bit uncomfortable!) you should know about.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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