Digital Realty Trust Earnings: Here’s Why Investors are Happy Now

Digital Realty Trust Inc. (NYSE:DLR) 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 up 3.60%.

Digital Realty Trust Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.17% to $1.19 in the quarter versus EPS of $1.09 in the year-earlier quarter.

Revenue: Rose 18.45% to $363.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Digital Realty Trust Inc. reported adjusted EPS income of $1.19 per share. By that measure, the company beat the mean analyst estimate of $1.17. It missed the average revenue estimate of $365.99 million.

Quoting Management: “We are very pleased with our operating performance and second quarter financial results,” said Michael F. Foust, Chief Executive Officer of Digital Realty. “Our leasing volume and pipeline remain robust despite some lease agreements that we expected to sign in the second quarter ultimately being completed in July. We are encouraged by the notably strong rental rates we are seeing across the portfolio for new Turn-Key FlexSM leases and renewals. We also continue to see strong demand for multi-megawatt, multi-site requirements from our larger enterprise clients, and are positioned to leverage our unique position in the market to capture those opportunities. We remain confident that our operational expertise, scale, global footprint and financial resources continue to enable us to execute on our strategic plan and enhance shareholder value.”

Key Stats (on next page)…

Revenue increased 0.77% from $360.71 million in the previous quarter. EPS increased 0.85% from $1.18 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 $1.21 and has not changed. For the current year, the average estimate has moved down from a profit of $4.82 to a profit of $4.77 over the last ninety days.

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