Equity Residential Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Equity Residential (NYSE:EQR) will unveil its latest earnings on Wednesday, July 27, 2011. Equity Residential is a real estate investment trust company that acquires and manages apartment properties in top growth markets in the United States.

Equity Residential Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 60 cents per share, a rise of 3.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 61 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 60 cents during the last month. For the year, analysts are projecting net income of $2.46 per share, a rise of 8.4% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 56 cents per share versus a mean estimate of net income of 56 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $524 million in revenue this quarter, a rise of 2.6% from the year ago quarter. Analysts are forecasting total revenue of $2.12 billion for the year, a rise of 6.5% from last year’s revenue of $1.99 billion.

Analyst Ratings: Analysts seem relatively indifferent about Equity Residential with 15 of 24 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose more than twofold from the year earlier. In the fourth quarter of the last fiscal year, the figure rose more than fourfold.

Over the last four quarters, revenue has increased 3.4% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 6.7% from the year earlier quarter.

Competitors to Watch: AvalonBay Communities, Inc. (NYSE:AVB), UDR, Inc. (NYSE:UDR), Apartment Investment and Management Co. (NYSE:AIV), Camden Property Trust (NYSE:CPT), BRE Properties, Inc. (NYSE:BRE), Mid-America Apartment (NYSE:MAA), Home Properties, Inc. (NYSE:HME), Post Properties, Inc. (NYSE:PPS), Colonial Properties Trust (NYSE:CLP), and Essex Property Trust, Inc. (NYSE:ESS).

Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had risen $4.28 (7.3%) from $58.79 to $63.07. The stock price saw one of its best stretches over the last year between April 18, 2011 and May 2, 2011 when shares rose for 10-straight days, rising 7% (+$3.88) over that span. It saw one of its worst periods between January 3, 2011 and January 11, 2011 when shares fell for seven-straight days, falling 4.9% (-$2.55) over that span. Shares are up $11.74 (+22.9%) year to date.

(Source: Xignite Financials)

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