Apr. 23 at 6:32 PM
Heads up alert! Only one day until Upcoming earnings on Wednesday, 4/23/2025 for
$EPRT
Bearish (2.5)
In evaluating Essential Properties Realty Trust, Inc.
(EPRT), recent developments indicate a cautious outlook for the stock.
The company recently announced a public offering of common stock, which included an upsized offering resulting in gross proceeds of approximately
$254.2 million.
This dilution of shares can weigh on existing stockholders and might signal a need for additional capital, potentially reflecting underlying operational challenges.
The quarterly dividend of
$0.295 per share represents an annualized yield of approximately 5.2%, which can be viewed positively; however, the market often scrutinizes the sustainability of dividends in the face of capital raises.
Key financial metrics are critical here: EPRT's P/E ratio is currently around 20, which is slightly above the industry average of 18, suggesting the stock may be overvalued relative to its peers.
EPS growth projections for the upcoming quarter are modest, with analysts forecasting a year-over-year increase of just 3%, indicating limited upside potential.
Revenue forecasts are stable, but the reliance on external financing through stock offerings could hamper future growth and profitability.
Comparatively, peers such as Realty Income (O) and Simon Property Group (SPG) are seeing more robust performance metrics, further highlighting the competitive pressures EPRT faces.
In terms of upcoming earnings reports, EPRT is scheduled to release its first-quarter results on April 23, 2025.
Analyst consensus estimates suggest that the company will report earnings of
$0.40 per share, maintaining a steady performance in a challenging market.
Historically, EPRT has shown a pattern of meeting or slightly exceeding earnings expectations, but the recent capital raises and executive promotions could signal strategic shifts that may not align well with current shareholder interests.
The impact of this earnings report will likely hinge on management's commentary regarding future growth strategies and how the recent capital raises will be utilized, as investor sentiment may remain cautious amidst concerns of dilution and market pressures.
- Funds were net buyers of
$EPRT during the previous reporting quarter.
- Top 5 funds with large holdings in
$EPRT:
* Balyasny Asset Management LLC
$35MM. New position. CGMFundRank: 92%, Fund Website: www.bamfunds.com
* Jain Global Llc
$14MM. New position. CGMFundRank: 54%
* Adage Capital P
$4MM. CGMFundRank: 73%, Fund Website: www.adagecapital.com
* GW&K Investment Management LLC
$3MM. CGMFundRank: 77%
* GEM Realty Capital Inc
$2MM. CGMFundRank: 65%, Fund Website: www.gemrc.com
- Last 10 days performance: 10%
- Last 30 days performance: 2%
- Last 90 days performance: 3%
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