How Do Analysts See CoreSite Realty Corporation (NYSE:COR) Performing In The Years Ahead?

CoreSite Realty Corporation’s (NYSE:COR) most recent earnings update in December 2018 confirmed that the business experienced a strong tailwind, eventuating to a double-digit earnings growth of 24%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive CoreSite Realty’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for CoreSite Realty

Analysts’ expectations for this coming year seems rather subdued, with earnings rising by a single digit 3.7%. The growth outlook in the following year seems much more buoyant with rates arriving at double digit 16% compared to today’s earnings, and finally hitting US$95m by 2022.

NYSE:COR Past and Future Earnings, March 14th 2019
NYSE:COR Past and Future Earnings, March 14th 2019

Even though it’s informative knowing the rate of growth year by year relative to today’s value, it may be more valuable to gauge the rate at which the company is moving every year, on average. The advantage of this technique is that we can get a better picture of the direction of CoreSite Realty’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 7.4%. This means that, we can anticipate CoreSite Realty will grow its earnings by 7.4% every year for the next few years.

Next Steps:

For CoreSite Realty, there are three key factors you should further research:

  1. 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.
  2. Valuation: What is COR 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 COR is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of COR? 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 editorial-team@simplywallst.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.