Can ALX sustain its EPS momentum into 2025?
4/7/2025 12:37am
**Alexander's (NYSE:ALX) may face challenges in sustaining its EPS momentum into 2025.** Here's why:
1. **Current EPS Performance and Analyst Forecasts**:
- Alexander's reported an EPS of $3.31 for Q2 2024, which was above the analyst estimate of $2.67.
- Analysts forecast an EPS of $11.50 for the current year.
2. **Recent Performance and Market Indicators**:
- The stock saw unusually high trading volume, indicating possible market interest or reactions.
- The stock price has experienced a 24% dip from its 52-week high, which could impact investor confidence and EPS sustainability.
3. **Dividend Payout and Financial Health**:
- Alexander's has a high dividend payout ratio of 212.77%, which could indicate that a significant portion of earnings is being returned to shareholders.
- The company's debt-to-equity ratio is 5.59, which may affect its financial flexibility and ability to sustain EPS momentum.
4. **Forecasted Price Movement and Market Sentiment**:
- The stock price is forecasted to increase to $19.01 by June 2025, which could suggest a positive outlook for EPS sustainability.
- However, the broader market conditions and sector performance will also influence ALX's EPS momentum.
In conclusion, while there are positive indicators such as the company's earnings beat and the forecasted increase in stock price, the high dividend payout ratio, the dip in stock price, and the broader market conditions suggest that sustaining EPS momentum could be challenging for Alexander's in 2025. The company's financial health and market sentiment will be critical factors in determining its future EPS performance.