Mid-America Apartment Communities Earnings: Here’s Why the Stock is Down Now

Mid-America Apartment Communities Inc. (NYSE:MAA) 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 0.94%.

Mid-America Apartment Communities Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.39% to $1.27 in the quarter versus EPS of $1.13 in the year-earlier quarter.

Revenue: Rose 8.89% to $133.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mid-America Apartment Communities Inc. reported adjusted EPS income of $1.27 per share. By that measure, the company beat the mean analyst estimate of $1.23. It missed the average revenue estimate of $135.38 million.

Quoting Management: Eric Bolton, Chairman and Chief Executive Officer, said, “The leasing environment across our markets continues to support solid rent growth and strong occupancy. Steady employment growth and favorable trends driving higher demand for apartment housing across our Sunbelt region supports an outlook for continued solid rent growth despite the uptick in new apartment deliveries.
“We are progressing towards a close of the merger of MAA and Colonial Properties Trust in line with our expectations and timeframes set out upon the announcement of the pending merger. We continue to believe that a close of the transaction at some point in September is likely. Early integration efforts are well underway and we remain very enthusiastic about the opportunities surrounding the combination of the two platforms.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 1.6% from $1.25 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 $1.21 to a profit $1.22. For the current year, the average estimate has moved up from a profit of $4.87 to a profit of $4.93 over the last ninety days.

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