Shareholders might have noticed that Modiv Industrial, Inc. (NYSE:MDV) filed its quarterly result this time last week. The early response was not positive, with shares down 7.9% to US$14.50 in the past week. The results don't look great, especially considering that statutory losses grew 514% toUS$0.86 per share. Revenues of US$13m did beat expectations by 3.8%, but it looks like a bit of a cold comfort. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Modiv Industrial
After the latest results, the consensus from Modiv Industrial's two analysts is for revenues of US$49.2m in 2024, which would reflect a measurable 3.8% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 52% to US$0.52. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$51.6m and losses of US$0.35 per share in 2024. So it's pretty clear the analysts have mixed opinions on Modiv Industrial after this update; revenues were downgraded and per-share losses expected to increase.
There was no major change to the consensus price target of US$16.33, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.
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 revenue is expected to reverse, with a forecast 3.0% annualised decline to the end of 2024. That is a notable change from historical growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Modiv Industrial is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. 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. We have analyst estimates for Modiv Industrial going out as far as 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - Modiv Industrial has 3 warning signs we think you should be aware of.
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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.