W. P. Carey Inc. (NYSE:WPC) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to US$55.72 in the week after its latest third-quarter results. It was a credible result overall, with revenues of US$397m and statutory earnings per share of US$0.51 both in line with analyst estimates, showing that W. P. Carey is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, W. P. Carey's six analysts are now forecasting revenues of US$1.68b in 2025. This would be a modest 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 16% to US$2.13 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.68b and earnings per share (EPS) of US$2.24 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$61.36, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values W. P. Carey at US$70.00 per share, while the most bearish prices it at US$56.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting W. P. Carey is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that W. P. Carey's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 8.9% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.1% annually. So it's pretty clear that, while W. P. Carey's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for W. P. Carey. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on W. P. Carey. Long-term earnings power is much more important than next year's profits. We have forecasts for W. P. Carey going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for W. P. Carey you should be aware of, and 1 of them doesn't sit too well with us.

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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.