W. P. Carey Inc. (NYSE:WPC) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

W. P. Carey Inc. (NYSE:WPC) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to US$55.72 in the week after its latest quarterly results. W. P. Carey reported in line with analyst predictions, delivering revenues of US$397m and statutory earnings per share of US$0.51, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for W. P. Carey

Following the latest results, W. P. Carey's six analysts are now forecasting revenues of US$1.68b in 2025. This would be a reasonable 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 16% to US$2.13 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.68b and earnings per share (EPS) of US$2.24 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at US$61.36, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values W. P. Carey at US$70.00 per share, while the most bearish prices it at US$56.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that W. P. Carey's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 8.9% p.a. growth over the last five years. Compare this to the 24 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it looks like W. P. Carey is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for W. P. Carey. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$61.36, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on W. P. Carey. Long-term earnings power is much more important than next year's profits. We have forecasts for W. P. Carey going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with W. P. Carey (at least 1 which is significant) , and understanding them should be part of your investment process.

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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.