American Finance Trust, Inc. , an important milestone in the company’s journey to build a stronger busin ess. The results were positive, with revenue coming in at US$75m, beating analyst expectations by 4.3%. This is an important time for investors, as they can track a company’s performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analyst has changed their mind on American Finance Trust after the latest results.
Taking into account the latest results, American Finance Trust’s solitary analyst currently expect revenues in 2020 to be US$303.2m, approximately in line with the last 12 months. Before this earnings result, the analyst had predicted US$296.7m revenue in 2020, although there was no accompanying EPS estimate. It looks like there’s been a clear increase in sentiment after the latest results, given the slight bump in revenue estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that American Finance Trust’s revenue growth is expected to slow, with forecast 0.1% increase next year well below the historical 15%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% next year. Factoring in the forecast slowdown in growth, it seems obvious that American Finance Trust is also expected to grow slower than other industry participants.