Home Properties Earnings: Here’s Why Investors are Ambivalent Now

Home Properties Inc. (NYSE:HME) 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.

Home Properties Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.63% to $1.11 in the quarter versus EPS of $0.96 in the year-earlier quarter.

Revenue: Rose 2.97% to $167.18 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Home Properties Inc. reported adjusted EPS income of $1.11 per share. By that measure, the company beat the mean analyst estimate of $1.09. It beat the average revenue estimate of $166.23 million.

Quoting Management: “The second quarter was a good one for Home Properties with continued solid operating performance resulting in record high Funds From Operations per share, which were at the top end of our expectations,” said Edward J. Pettinella, Home Properties President and CEO. “Recent capital markets activities have strengthened the Company’s balance sheet, increasing our financial flexibility for the future.”

Key Stats (on next page)…

Revenue increased 0.06% from $167.08 million in the previous quarter. EPS increased 5.71% from $1.05 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 $1.13 to a profit $1.12. For the current year, the average estimate is a profit of $4.38, 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)