INDUS Realty Trust, Inc. Surprised Analysts With A Profit, And Analysts Boosted Their EPS Forecasts

Last week, you might have seen that INDUS Realty Trust, Inc. (NASDAQ:INDT) released its annual result to the market. The early response was not positive, with shares down 5.5% to US$73.17 in the past week. Although revenues of US$42m were in line with analyst expectations, INDUS Realty Trust surprised on the earnings front, with an unexpected (statutory) profit of US$1.75 per share a nice improvement on the losses that the analystsforecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for INDUS Realty Trust

Taking into account the latest results, the consensus forecast from INDUS Realty Trust's four analysts is for revenues of US$48.3m in 2022, which would reflect a notable 14% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to crater 91% to US$0.13 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$48.3m and earnings per share (EPS) of US$0.10 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target was unchanged at US$85.67, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on INDUS Realty Trust, with the most bullish analyst valuing it at US$91.00 and the most bearish at US$78.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's clear from the latest estimates that INDUS Realty Trust's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 0.05% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect INDUS Realty Trust to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around INDUS Realty Trust's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for INDUS Realty Trust going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for INDUS Realty Trust (1 is a bit unpleasant!) 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.