Empire State Realty Trust, Inc. (NYSE:ESRT) Analysts Just Trimmed Their Revenue Forecasts By 10%

The latest analyst coverage could presage a bad day for Empire State Realty Trust, Inc. (NYSE:ESRT), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. At US$9.47, shares are up 4.1% in the past 7 days. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the latest downgrade, the four analysts covering Empire State Realty Trust provided consensus estimates of US$519m revenue in 2022, which would reflect a definite 15% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$578m of revenue in 2022. The consensus view seems to have become more pessimistic on Empire State Realty Trust, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Empire State Realty Trust

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Empire State Realty Trust's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 15% to the end of 2022. This tops off a historical decline of 2.8% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.7% annually. So while a broad number of companies are forecast to grow, unfortunately Empire State Realty Trust is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Empire State Realty Trust going forwards.

Want more information? At least one of Empire State Realty Trust's four analysts has provided estimates out to 2023, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.