Here's What Analysts Are Forecasting For Morguard Real Estate Investment Trust (TSE:MRT.UN) After Its Yearly Results

As you might know, Morguard Real Estate Investment Trust (TSE:MRT.UN) recently reported its full-year numbers. Revenues were in line with expectations, at CA$257m, while statutory losses ballooned to CA$1.16 per share. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Morguard Real Estate Investment Trust

After the latest results, the lone analyst covering Morguard Real Estate Investment Trust are now predicting revenues of CA$265.0m in 2024. If met, this would reflect an okay 3.2% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Morguard Real Estate Investment Trust forecast to report a statutory profit of CA$0.93 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of CA$256.0m and earnings per share (EPS) of CA$0.96 in 2024. So it's pretty clear consensus is mixed on Morguard Real Estate Investment Trust after the latest results; whilethe analyst lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

There's been no major changes to the price target of CA$5.50, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

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. One thing stands out from these estimates, which is that Morguard Real Estate Investment Trust is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.2% annualised growth until the end of 2024. If achieved, this would be a much better result than the 2.8% annual decline 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 2.2% annually. Not only are Morguard Real Estate Investment Trust's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$5.50, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on Morguard Real Estate Investment Trust. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Morguard Real Estate Investment Trust going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Morguard Real Estate Investment Trust (1 shouldn't be ignored!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.