Equity Residential Earnings: Here’s Why Shares are Down Now

Equity Residential (NYSE:EQR) 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 down 0.74%.

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Equity Residential Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.92% to $0.64 in the quarter versus EPS of $0.61 in the year-earlier quarter.

Revenue: Rose 4.16% to $539.16 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equity Residential reported adjusted EPS income of $0.64 per share. By that measure, the company beat the mean analyst estimate of $0.63. It missed the average revenue estimate of $563.86 million.

Quoting Management: “The first quarter of 2013 was an historic period for Equity Residential as we completed the $9 billion acquisition and successful integration of nearly 22,000 apartment units across our core markets while selling more than 18,000 non-core apartment units for nearly $3 billion,” said David J. Neithercut, Equity Residential’s President and CEO. “I am extremely proud of my colleagues across the enterprise for their efforts in successfully completing our portfolio transformation while, at the same time, producing same store revenue growth of 5.1%, which was in line with our operating expectations for the quarter. We currently expect operations for the full year to be consistent with our previous forecast of 4% to 5% same store revenue growth and look forward to the years ahead of owning and operating the finest portfolio of multifamily assets in the best markets for long-term growth.”

Key Stats (on next page)…

Revenue increased 8.7% from $496.02 million in the previous quarter. EPS decreased 14.67% from $0.75 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 $0.75 to a profit $0.71. For the current year, the average estimate has moved down from a profit of $2.94 to a profit of $2.84 over the last ninety days.

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