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Ladder Capital Corp Just Missed Earnings - But Analysts Have Updated Their Models
Ladder Capital Corp Just Missed Earnings - But Analysts Have Updated Their Models

Yahoo

time01-05-2025

  • Business
  • Yahoo

Ladder Capital Corp Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Ladder Capital Corp (NYSE:LADR) last week released its latest first-quarter, and things did not turn out so great for shareholders. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of US$51m missed by 14%, and statutory earnings per share of US$0.09 fell short of forecasts by 20%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the current consensus, from the four analysts covering Ladder Capital, is for revenues of US$251.9m in 2025. This implies a measurable 2.8% reduction in Ladder Capital's revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 2.8% to US$0.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$269.5m and earnings per share (EPS) of US$0.71 in 2025. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the solid gain to to the earnings per share numbers. Check out our latest analysis for Ladder Capital The consensus has made no major changes to the price target of US$12.67, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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 Ladder Capital analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$11.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.7% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ladder Capital is expected to lag the wider industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ladder Capital's earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. 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. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ladder Capital analysts - going out to 2026, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 2 warning signs for Ladder Capital that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio

Does Ladder Capital (NYSE:LADR) Deserve A Spot On Your Watchlist?
Does Ladder Capital (NYSE:LADR) Deserve A Spot On Your Watchlist?

Yahoo

time27-03-2025

  • Business
  • Yahoo

Does Ladder Capital (NYSE:LADR) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Ladder Capital (NYSE:LADR). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. It certainly is nice to see that Ladder Capital has managed to grow EPS by 23% per year over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Our analysis has highlighted that Ladder Capital's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. EBIT margins for Ladder Capital remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 7.0% to US$271m. That's a real positive. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart. See our latest analysis for Ladder Capital In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Ladder Capital's forecast profits? It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Ladder Capital shares worth a considerable sum. We note that their impressive stake in the company is worth US$177m. That equates to 12% of the company, making insiders powerful and aligned with other shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver. For growth investors, Ladder Capital's raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Ladder Capital's continuing strength. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. It is worth noting though that we have found 2 warning signs for Ladder Capital (1 can't be ignored!) that you need to take into consideration. Although Ladder Capital certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.

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