On 31 December 2018, CoreSite Realty Corporation (NYSE:COR) announced its earnings update. Overall, analyst forecasts seem fairly subdued, with profits predicted to rise by 3.7% next year compared with the higher past 5-year average growth rate of 38%. With trailing-twelve-month net income at current levels of US$78m, we should see this rise to US$81m in 2020. Below is a brief commentary on the longer term outlook the market has for CoreSite Realty. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
How is CoreSite Realty going to perform in the near future?
The view from 15 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of COR’s earnings growth over these next few years.
This results in an annual growth rate of 7.4% based on the most recent earnings level of US$78m to the final forecast of US$95m by 2022. EPS reaches $2.56 in the final year of forecast compared to the current $2.23 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 14% to 13% by the end of 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For CoreSite Realty, I’ve compiled three relevant factors you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is CoreSite Realty worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CoreSite Realty is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CoreSite Realty? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.