Apartment Investment & Management Earnings: Here’s Why Shares are Down Now

Apartment Investment & Management Co. (NYSE:AIV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.07%.

Apartment Investment & Management Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 28.95% to $0.49 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 4.87% to $259.66 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apartment Investment & Management Co. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.48. It missed the average revenue estimate of $264.51 million.

Quoting Management: Chairman and Chief Executive Officer Terry Considine comments: “Aimco enjoyed a solid second quarter with good progress on all fronts. Customer demand for Aimco apartments remains steady and renewal rent increases were greater than 5% for the eighth consecutive quarter. Conventional property average revenue per apartment home is up 7% to $1,389, reflecting rent growth and continued portfolio improvements. We are on pace to achieve our leverage target early next year and our simplified business model is providing for continued success in reducing offsite costs. Our prospects are good as we enter the second half of the year.”

Key Stats (on next page)…

Revenue increased 2.04% from $254.46 million in the previous quarter. EPS increased 2.08% from $0.48 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 $0.51 to a profit $0.5. For the current year, the average estimate has moved up from a profit of $2.02 to a profit of $2.03 over the last ninety days.

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