Alexandria Real Estate Equities Earnings: Here’s Why Investors are Ambivalent Now

Alexandria Real Estate Equities Inc. (NYSE:ARE) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Alexandria Real Estate Equities Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.43% to $1.11 in the quarter versus EPS of $0.97 in the year-earlier quarter.

Revenue: Rose 3.75% to $150.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alexandria Real Estate Equities Inc. reported adjusted EPS income of $1.11 per share. By that measure, the company missed the mean analyst estimate of $1.11. It missed the average revenue estimate of $152.71 million.

Quoting Management: “We are pleased to announce a 7 percent increase in our quarterly cash dividend declared to common shareholders from 56 cents to 60 cents per common share for the first quarter of 2013. The dividend increase will allow the Company to share its increase in cash flows from operations with its common shareholders while also continuing to retain cash flows from operations for reinvestment. Over the past 12 months, we have increased our quarterly cash dividend declared per common share by 11 cents, or approximately 22 percent,” said Joel S. Marcus, Chief Executive Officer of Alexandria.

Key Stats (on next page)…

Revenue decreased 2.45% from $154.17 million in the previous quarter. EPS decreased 4.31% from $1.16 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.12 to a profit $1.11. For the current year, the average estimate has moved up from a profit of $4.51 to a profit of $4.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]