Extra Space Storage Earnings: Here’s Why Investors are Ambivalent Now

Extra Space Storage Inc. (NYSE:EXR) delivered a profit and beat 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.

Extra Space Storage Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 31.58% to $0.5 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Rose 32.95% to $126.24 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Extra Space Storage Inc. reported adjusted EPS income of $0.5 per share. By that measure, the company beat the mean analyst estimate of $0.49. It beat the average revenue estimate of $123.77 million.

Quoting Management: Spencer F. Kirk, CEO of Extra Space Storage Inc., commented: “Strong occupancy, stable rental and vacate trends, lower discounts and increases in street rates all combined to produce another outstanding quarter. Our disciplined and creative approach to source and execute accretive acquisitions is proving beneficial to our shareholders. The operating environment remains positive and we remain steadfast in our efforts to maximize occupancy, optimize revenue and minimize expenses.”

Key Stats (on next page)…

Revenue increased 5.8% from $119.32 million in the previous quarter. EPS increased 8.7% from $0.46 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.51 to a profit $0.52. For the current year, the average estimate has moved up from a profit of $1.93 to a profit of $2 over the last ninety days.

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