Analysts Are Updating Their Essential Properties Realty Trust, Inc. (NYSE:EPRT) Estimates After Its First-Quarter Results

It's been a good week for Essential Properties Realty Trust, Inc. (NYSE:EPRT) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.3% to US$25.73. Results were roughly in line with estimates, with revenues of US$104m and statutory earnings per share of US$0.28. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Essential Properties Realty Trust

Taking into account the latest results, the consensus forecast from Essential Properties Realty Trust's seven analysts is for revenues of US$435.9m in 2024. This reflects a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.5% to US$1.15. Before this earnings report, the analysts had been forecasting revenues of US$437.8m and earnings per share (EPS) of US$1.15 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$28.17, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Essential Properties Realty Trust analyst has a price target of US$31.00 per share, while the most pessimistic values it at US$26.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Essential Properties Realty Trust'shistorical trends, as the 20% annualised revenue growth to the end of 2024 is roughly in line with the 24% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.2% annually. So although Essential Properties Realty Trust is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$28.17, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Essential Properties Realty Trust going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Essential Properties Realty Trust you should be aware of, and 1 of them is a bit unpleasant.

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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.