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Prologis (PLD) Beats on Q3 FFO & Revenue Estimates

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Have you been eager to see how Prologis Inc.’s (PLD - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco, CA – based industrial real estate investment trust’s (REIT) earnings release this morning:

A FFO Beat

Prologis came out with core funds from operations ("FFO") per share of 73 cents, beating the Zacks Consensus Estimate of 70 cents.  

Better-than-expected growth in revenues, backed by improved operating performance and higher net promote income, was primarily responsible for this beat.

How Was the Earnings Surprise Trend?

Prologis has a decent earnings surprise history. Before posting a beat in Q3, the company delivered a positive surprise in three out of prior four quarters and in-line result in the other occasion, as shown in the chart below.

PROLOGIS INC Price and EPS Surprise

 

PROLOGIS INC Price and EPS Surprise | PROLOGIS INC Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.08% in the trailing four quarters.

Revenue Came Higher Than Expected

Prologis posted revenues of $704.6 million, which beat the Zacks Consensus Estimate of $604.3 million. It compared favorably with the year-ago number of $580.6 million.

Key Developments to Note:

Net effective same store net operating income (NOI) – Prologis share – is expected to grow at 5.50–5.80% compared to the previous outlook of 4.75% – 5.25%.

Prologis raised core FFO per share outlook for full year 2016. The company now projects core FFO per share in the range of $2.56–$2.57, up from $2.52–$2.58 guided earlier.

What Zacks Rank Says

Prologis currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)


Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Check back later for our full write up on this PLD earnings report later!


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