US$69.00 - That's What Analysts Think Green Brick Partners, Inc. (NYSE:GRBK) Is Worth After These Results
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As you might know, Green Brick Partners, Inc. (NYSE:GRBK) last week released its latest quarterly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 4.0% short of analyst estimates at US$524m, and statutory earnings of US$1.98 per share missed forecasts by 4.5%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Green Brick Partners
Taking into account the latest results, the most recent consensus for Green Brick Partners from four analysts is for revenues of US$2.23b in 2025. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 4.1% to US$8.14. Before this earnings report, the analysts had been forecasting revenues of US$2.22b and earnings per share (EPS) of US$8.20 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The consensus price target rose 20% to US$69.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Green Brick Partners' earnings by assigning a price premium. 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. There are some variant perceptions on Green Brick Partners, with the most bullish analyst valuing it at US$78.00 and the most bearish at US$60.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Green Brick Partners' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10.0% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% per year. So it's pretty clear that, while Green Brick Partners' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.