Associated Estates Realty Corp Third Quarter Earnings Sneak Peek

Associated Estates Realty Corporation (NYSE:AEC) will unveil its latest earnings on Tuesday, October 23, 2012. Associated Estates Realty is a fully integrated multifamily real estate company engaged in property acquisition, advisory, development, construction, management, disposition, operation, and ownership activities.

Associated Estates Realty Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 31 cents per share, a rise of 14.8% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $1.25 per share, a rise of 21.4% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at profit of 32 cents a share versus the estimate of net income of 33 cents a share. It was the fourth straight quarter of missing estimates.

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A Look Back: In the second quarter, the company swung to a profit of $23.7 million (54 cents a share) from a loss of $1.6 million (4 cents) a year earlier, but missed analyst estimates. Revenue fell 7.1% to $42.3 million from $45.5 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 8.6% in revenue from the year-earlier quarter to $44.5 million.

Stock Price Performance: Between August 21, 2012 and October 17, 2012, the stock price had fallen 53 cents (-3.5%), from $15.22 to $14.69. The stock price saw one of its best stretches over the last year between March 8, 2012 and March 16, 2012, when shares rose for seven straight days, increasing 5.2% (+78 cents) over that span. It saw one of its worst periods between February 3, 2012 and February 15, 2012 when shares fell for nine straight days, dropping 8.6% (-$1.43) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 6.9% in the fourth quarter of the last fiscal year and 1% in first quarter before falling again in the second quarter.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $23.7 million in the second.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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