Killam Apartment Real Estate Investment Trust Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

It’s been a good week for Killam Apartment Real Estate Investment Trust (TSE:KMP.UN) shareholders, because the company has just released its latest annual results, and the shares gained 6.5% to CA$21.93. It was an okay result overall, with revenues coming in at CA$242m, roughly what analysts had been expecting. Earnings are an important time for investors, as they can track a company’s performance, look at what top analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts’ statutory forecasts suggest is in store for next year.

See our latest analysis for Killam Apartment Real Estate Investment Trust

TSX:KMP.UN Past and Future Earnings, February 16th 2020
TSX:KMP.UN Past and Future Earnings, February 16th 2020

Following the latest results, Killam Apartment Real Estate Investment Trust’s four analysts are now forecasting revenues of CA$268.5m in 2020. This would be a decent 11% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of CA$259.8m in 2020, and did not provide an EPS estimate. So there’s been a pretty clear uptick in analyst sentiment after these results, given the small lift in next year’s revenue forecasts.

We’d also point out that that analysts have made no major changes to their price target of CA$22.37. 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. Currently, the most bullish analyst values Killam Apartment Real Estate Investment Trust at CA$24.00 per share, while the most bearish prices it at CA$20.50. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

In addition, we can look to Killam Apartment Real Estate Investment Trust’s past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. We can infer from the latest estimates that analysts are expecting a continuation of Killam Apartment Real Estate Investment Trust’s historical trends, as next year’s forecast 11% revenue growth is roughly in line with 9.2% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.2% per year. So it’s pretty clear that Killam Apartment Real Estate Investment Trust is forecast to grow substantially faster than its market.

The Bottom Line

The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. The consensus price target held steady at CA$22.37, with the latest estimates not enough to have an impact on analysts’ estimated valuations.

We have estimates for Killam Apartment Real Estate Investment Trust from its four analysts , and you can see them free on our platform here.

You can also view our analysis of Killam Apartment Real Estate Investment Trust’s balance sheet, and whether we think Killam Apartment Real Estate Investment Trust is carrying too much debt, for free on our platform here.

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