Lexington Realty Trust Earnings: Here’s Why Investors are Selling Shares Now

Lexington Realty Trust (NYSE:LXP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.76%.

Lexington Realty Trust Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.17% to $0.25 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 24.05% to $99.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lexington Realty Trust reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $100.33 million.

Quoting Management: T. Wilson Eglin, President and Chief Executive Officer of Lexington, stated, “We have made great progress addressing lease rollover, completing 4.6 million square feet of new and extended leases including 43% of our square footage subject to leases expiring in 2014 and 2015 since the beginning of the second quarter and through today. As a result, the weighted-average lease term of our portfolio is 7.7 years, an increase of 18% compared to June 30, 2012, with approximately 30% of our revenue coming from leases ten years or longer, providing the Company with a more stable base of long-term cash flow. In addition, we continued to lower our cost of capital with the completion of our first investment-grade rated notes offering, utilizing the proceeds primarily to retire expensive short-term secured debt.”

Key Stats (on next page)…

Revenue increased 19.46% from $83.21 million in the previous quarter. EPS were the same at $0.25 as the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.26 and has not changed. For the current year, the average estimate is a profit of $1.01, 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)