Federal Realty Investment Trust Earnings: Here’s Why Investors are Ambivalent Now

Federal Realty Investment Trust (NYSE:FRT) 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.

Federal Realty Investment Trust Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.62% to $1.14 in the quarter versus EPS of $1.04 in the year-earlier quarter.

Revenue: Rose 6.76% to $158 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federal Realty Investment Trust reported adjusted EPS income of $1.14 per share. By that measure, the company beat the mean analyst estimate of $1.12. It beat the average revenue estimate of $155.36 million.

Quoting Management: “Our portfolio continues to outperform expectations and our leasing activity, which produced rollover growth in excess of 15%, sets us up well for the future. We are also pleased with the progress and momentum in our development pipeline and the value creation we expect it to deliver,” said Don Wood, president and chief executive officer of Federal Realty Investment Trust. “Finally, we are proud to increase our dividend for the 46th consecutive year, the only REIT to have such record.”

Key Stats (on next page)…

Revenue decreased 0.04% from $158.06 million in the previous quarter. EPS increased 0% from $1.14 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 $1.15 to a profit $1.14. For the current year, the average estimate is a profit of $4.59, which is the same with that ninety days ago.

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