Equity Residential Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Equity Residential (NYSE:EQR) will unveil its latest earnings on Wednesday, October 24, 2012. 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 analyst estimate is for net income of 76 cents per share, a rise of 22.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 71 cents. Between one and three months ago, the average estimate moved up. It has risen from 75 cents during the last month. Analysts are projecting profit to rise by 14% versus last year to $2.77.

Past Earnings Performance: After missing estimates in the previous quarter by one cent in the first quarter, the company met analysts’ expectations last quarter. It reported profit of 68 cents last quarter.

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A Look Back: In the second quarter, profit fell 81.4% to $103.3 million (33 cents a share) from $555.9 million ($1.85 a share) the year earlier, meeting analyst expectations. Revenue rose 8.4% to $530.2 million from $489 million.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price fell $6.01 (-9.5%), from $63.49 to $57.48. The stock price saw one of its best stretches over the last year between January 19, 2012 and January 27, 2012, when shares rose for seven straight days, increasing 7.4% (+$4.10) over that span. It saw one of its worst periods between August 2, 2012 and August 14, 2012 when shares fell for nine straight days, dropping 5.5% (-$3.47) over that span.

Wall St. Revenue Expectations: On average, analysts predict $554.2 million in revenue this quarter, a rise of 8.9% from the year-ago quarter. Analysts are forecasting total revenue of $2.17 billion for the year, a rise of 9.6% from last year’s revenue of $1.98 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 9.7% in the fourth quarter of the last fiscal year and 0.4% in the first quarter before climbing again in the second quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 14.1% in the first quarter before dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 11 of 17 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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