Inland Real Estate Earnings: Here’s Why Investors are Ambivalent Now

Inland Real Estate Corp. (NYSE:IRC) delivered a profit and met 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.

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Inland Real Estate Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10% to $0.22 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Decreased 1.09% to $40.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Inland Real Estate Corp. reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.22. It beat the average revenue estimate of $38.8 million.

Quoting Management: “The results we reported for the first quarter of 2013 demonstrate that our operating platform continues to exhibit solid performance,” said Mark Zalatoris, Inland Real Estate Corporation’s president and chief executive officer. “Our team executed robust leasing volumes that outpaced activity in every quarter since the fourth quarter of 2010, with double-digit increases in average base rents for new and renewal leases executed in the quarter. We also reported a 3.2 percent increase in consolidated same store NOI for the quarter, which reflects our strong leasing activity in 2012. In addition, we continue to upgrade portfolio quality and recycle capital by selling non-core properties and acquiring market-dominant Class A assets in off-market transactions, generating attractive yields on investment and improving the long-term growth profile of the Company.”

Key Stats (on next page)…

Revenue increased 0.96% from $40.51 million in the previous quarter. EPS decreased 8.33% from $0.24 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 $0.23 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $0.92 to a profit of $0.91 over the last ninety days.

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