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CoreSite Realty Corporation (NYSE:COR): What Does The Future Look Like?

Simply Wall St

After CoreSite Realty Corporation's ( NYSE:COR ) earnings announcement on 30 June 2019, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 2.7% next year relative to the higher past 5-year average growth rate of 33%. Presently, with latest-twelve-month earnings at US$78m, we should see this growing to US$80m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for CoreSite Realty in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here .

See our latest analysis for CoreSite Realty

What can we expect from CoreSite Realty in the longer term?

The longer term view from the 16 analysts covering COR is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for COR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:COR Past and Future Earnings, August 20th 2019

This results in an annual growth rate of 11% based on the most recent earnings level of US$78m to the final forecast of US$100m by 2022. EPS reaches $2.46 in the final year of forecast compared to the current $2.23 EPS today. However, the near term margins may change heading into 2022, from the current levels of 14% to 13%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For CoreSite Realty, there are three pertinent factors you should further research:

  1. Financial Health : Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation : What is CoreSite Realty worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CoreSite Realty is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CoreSite Realty? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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.

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. Thank you for reading.