Tanger Factory Outlet Centers Earnings: Here’s Why Investors are Ambivalent Now

Tanger Factory Outlet Centers Inc. (NYSE:SKT) 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.

Tanger Factory Outlet Centers Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.82% to $0.44 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 21.53% to $91 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tanger Factory Outlet Centers Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company beat the mean analyst estimate of $0.43. It beat the average revenue estimate of $89.81 million.

Quoting Management: “Credit ratings upgrades to BBB+ by Standard & Poor’s and Baa1 by Moody’s Investor Service were major second quarter highlights for Tanger. We are proud to have been able to deliver double digit FFO growth while maintaining a strong balance sheet. This growth was driven both by solid internal performance, as evidenced by an increase in same center net operating income of 4.5% during the second quarter, and the incremental income in 2013 from the four new properties added to the portfolio last year,” commented Steven B. Tanger, President and Chief Executive Officer. “During the quarter, we broke ground on two additional projects. Tanger Outlets Ottawa , our first Canadian ground up development, and a major expansion of Tanger Outlets Cookstown will further the presence of the Tanger Outlets brand in the Canadian marketplace,” he added.

Key Stats (on next page)…

Revenue increased 2.6% from $88.69 million in the previous quarter. EPS increased 4.76% from $0.42 in 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 $0.46 and has not changed. For the current year, the average estimate has moved up from a profit of $1.8 to a profit of $1.81 over the last ninety days.

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