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Gaming and Leisure Properties, Inc. Annual Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) came out with its annual results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. It was a credible result overall, with revenues of US$1.2b and statutory earnings per share of US$1.81 both in line with analyst estimates, showing that Gaming and Leisure Properties is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Gaming and Leisure Properties

NasdaqGS:GLPI Past and Future Earnings, February 22nd 2020
NasdaqGS:GLPI Past and Future Earnings, February 22nd 2020

After the latest results, the eleven analysts covering Gaming and Leisure Properties are now predicting revenues of US$1.20b in 2020. If met, this would reflect a reasonable 3.7% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to expand 16% to US$2.11. Yet prior to the latest earnings, analysts had been forecasting revenues of US$1.16b and earnings per share (EPS) of US$2.11 in 2020. So it looks like there's been no major change in sentiment following the latest results, although analysts have made a small increase to to revenue forecasts.

It may not be a surprise to see that analysts have reconfirmed their price target of US$47.50, implying that the uplift in sales is not expected to greatly contribute to Gaming and Leisure Properties's valuation in the near term. 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. The most optimistic Gaming and Leisure Properties analyst has a price target of US$53.00 per share, while the most pessimistic values it at US$38.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Gaming and Leisure Properties shareholders.

Further, we can compare these estimates to past performance, and see how Gaming and Leisure Properties forecasts compare to the wider market's forecast performance. We would highlight that Gaming and Leisure Properties's revenue growth is expected to slow, with forecast 3.7% increase next year well below the historical 16%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Gaming and Leisure Properties to grow slower than the wider market.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Gaming and Leisure Properties going out to 2021, and you can see them free on our platform here..

It might also be worth considering whether Gaming and Leisure Properties's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.