BRE Properties Earnings: Here’s Why Investors are Ambivalent Now

BRE Properties Inc. (NYSE:BRE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

BRE Properties Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.78% to $0.63 in the quarter versus EPS of $0.59 in the year-earlier quarter.

Revenue: Rose 2.35% to $101.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: BRE Properties Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.6. It beat the average revenue estimate of $101.83 million.

Quoting Management: “We are pleased with the progress we have achieved in executing our strategic initiatives in 2013,” commented Constance B. Moore, Chief Executive Officer of BRE Properties. “During the second quarter, we achieved internal growth near the high end of our expectations, completed the disposition of $53 million of interests in non-core communities; and delivered our Aviara development as planned. Based on our year to date results and our expectations for the second half of 2013, we are raising the mid-points of our operational and earnings guidance. Our key initiatives remain unchanged: to maximize the operating performance of our portfolio, and continue to execute on our development and strategic disposition programs. Over time, we believe these efforts will improve our portfolio quality while preserving our balance sheet strength, which should position BRE to generate above-average returns in the coming years.”

Key Stats (on next page)…

Revenue increased 0.65% from $101.24 million in the previous quarter. EPS increased 8.62% from $0.58 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.62 and has not changed. For the current year, the average estimate has moved down from a profit of $2.44 to a profit of $2.42 over the last ninety days.

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

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