Associated Estates Realty Earnings: Here’s Why Shares are Down Now

Associated Estates Realty Corp. (NYSE:AEC) delivered a profit and missed 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. Shares are down 0.06%.

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Associated Estates Realty Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.9% to $0.31 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 4.82% to $45 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Associated Estates Realty Corp. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.32. It missed the average revenue estimate of $46.31 million.

Quoting Management: “It was another strong quarter for Associated Estates. Operating fundamentals remain solid and the propensity to rent apartments continues at a generational high,” said Jeffrey I. Friedman, President and Chief Executive Officer.

Key Stats (on next page)…

Revenue decreased 4.17% from $46.96 million in the previous quarter. EPS decreased 11.43% from $0.35 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 $0.34 to a profit $0.33. For the current year, the average estimate has moved down from a profit of $1.36 to a profit of $1.32 over the last ninety days.

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