For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Arbor Realty Trust Inc’s (NYSE:ABR) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. See our latest analysis for Arbor Realty Trust
Did ABR beat its long-term earnings growth trend and its industry?
I prefer to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This allows me to examine various companies on a more comparable basis, using new information. For Arbor Realty Trust, its most recent trailing-twelve-month earnings is US$76.41M, which, relative to the prior year’s figure, has moved up by 33.41%. Since these figures may be relatively nearsighted, I’ve estimated an annualized five-year value for Arbor Realty Trust’s earnings, which stands at US$29.47M This suggests that, on average, Arbor Realty Trust has been able to gradually grow its profits over the past few years as well.What’s enabled this growth? Let’s see whether it is solely because of an industry uplift, or if Arbor Realty Trust has seen some company-specific growth. The rise in earnings seems to be bolstered by a strong top-line increase beating its growth rate of expenses. Though this brought about a margin contraction, it has made Arbor Realty Trust more profitable. Looking at growth from a sector-level, the US mortgage reits industry has been relatively flat in terms of earnings growth in the previous year, settling down from a notable 11.41% over the past half a decade. This shows that whatever near-term headwind the industry is enduring, Arbor Realty Trust is less exposed compared to its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Arbor Realty Trust has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Arbor Realty Trust to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ABR’s future growth? Take a look at our free research report of analyst consensus for ABR’s outlook.
- Financial Health: Is ABR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.