Digital Realty Trust Earnings: Here’s Why Shares are Down Now

Digital Realty Trust Inc. (NYSE:DLR) delivered a profit and met 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. Shares are down 1.48%.

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Digital Realty Trust Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.32% to $1.18 in the quarter versus EPS of $1.06 in the year-earlier quarter.

Revenue: Rose 25.96% to $358.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Digital Realty Trust Inc. reported adjusted EPS income of $1.18 per share. By that measure, the company met the mean analyst estimate of $1.18. It beat the average revenue estimate of $353.29 million.

Quoting Management: “We are very pleased with our solid operating performance in the first quarter and are encouraged by the high level of leasing activity that continues today,” said Michael F. Foust, Chief Executive Officer of Digital Realty. “A significant portion of this activity during the quarter came from customers with large requirements that we were able to satisfy with our Custom Solutions offering. Notably, markets that experienced the highest levels of activity included New York metro, Northern Virginia, Chicago, London and Singapore.”

Key Stats (on next page)…

Revenue increased 2.06% from $351.17 million in the previous quarter. EPS increased 2.61% from $1.15 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 $1.23 to a profit $1.19. For the current year, the average estimate has moved down from a profit of $4.96 to a profit of $4.82 over the last ninety days.

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