It has been about a month since the last earnings report for Taubman Centers, Inc. . Shares have lost about 6.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Taubman Centers Q4 FFO Lags Estimates, Revenues Up
Taubman Centers fourth-quarter 2016 adjusted FFO per share of $1.01 missed the Zacks Consensus Estimate of $1.03.
The company experienced a decline in lease and occupancy as well as comparable center net operating income (excluding lease cancellation income) in the quarter under review.
However, the results compared favorably with the year-ago quarter tally of $0.98, depicting growth of 3.1%.
Revenues came in at $166.2 million, beating the Zacks Consensus Estimate of $160.3 million and improving 6.4% from around $156.2 million in the prior-year quarter.
For full-year 2016, Taubman’s adjusted FFO per share were $3.58, reflecting growth of 4.7% from the year-ago figure of $3.42. Revenues of $612.6 million also grew 9.9% year over year.
Quarter in Detail
Comparable center NOI, excluding lease cancellation income, edged down 0.1% year over year; while average rent per square foot was $60.97, up 2% from year over year. For the period ended Dec 31, 2016, the trailing 12-month releasing spreads per square foot were 18.8%.
For the fourth quarter, mall tenant sales per square foot were up 5%. Further, comparable mall tenant sales per square foot of $792 for 2016 denoted growth of about 1% and reflected solid growth in the fourth quarter.
However, as of Dec 31, 2016, the comparable centers’ portfolio was 96.1% leased, denoting a 0.8% decline from 96.9% on Dec 31, 2015. Further, ending occupancy in comparable centers was 94.7% on Dec 31, 2016, reflecting a decline of 0.5% from 95.2% on Dec 31, 2015. Notably, the closing of three Sports Authority spaces, which aggregated 130,000 square feet and denoted around 1.3% of comparable center space, adversely affected the leasing and occupancy figures.
Liquidity
Taubman Centers exited fourth-quarter 2016 with cash and cash equivalents of $40.6 million, down from $206.6 million recorded at year-end 2015.
Guidance
Taubman Centers introduced its guidance for 2017. The company projects 2017 FFO per share in the range of $3.67–$3.82. The full-year FFO per share guidance is backed by assumptions of comparable center NOI growth, excluding lease cancellation income, of about 3.5% for the year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter.
VGM Scores
At this time, Taubman Centers' stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'C'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Taubman Centers (TCO) Down 6.5% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Taubman Centers, Inc. . Shares have lost about 6.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Taubman Centers Q4 FFO Lags Estimates, Revenues Up
Taubman Centers fourth-quarter 2016 adjusted FFO per share of $1.01 missed the Zacks Consensus Estimate of $1.03.
The company experienced a decline in lease and occupancy as well as comparable center net operating income (excluding lease cancellation income) in the quarter under review.
However, the results compared favorably with the year-ago quarter tally of $0.98, depicting growth of 3.1%.
Revenues came in at $166.2 million, beating the Zacks Consensus Estimate of $160.3 million and improving 6.4% from around $156.2 million in the prior-year quarter.
For full-year 2016, Taubman’s adjusted FFO per share were $3.58, reflecting growth of 4.7% from the year-ago figure of $3.42. Revenues of $612.6 million also grew 9.9% year over year.
Quarter in Detail
Comparable center NOI, excluding lease cancellation income, edged down 0.1% year over year; while average rent per square foot was $60.97, up 2% from year over year. For the period ended Dec 31, 2016, the trailing 12-month releasing spreads per square foot were 18.8%.
For the fourth quarter, mall tenant sales per square foot were up 5%. Further, comparable mall tenant sales per square foot of $792 for 2016 denoted growth of about 1% and reflected solid growth in the fourth quarter.
However, as of Dec 31, 2016, the comparable centers’ portfolio was 96.1% leased, denoting a 0.8% decline from 96.9% on Dec 31, 2015. Further, ending occupancy in comparable centers was 94.7% on Dec 31, 2016, reflecting a decline of 0.5% from 95.2% on Dec 31, 2015. Notably, the closing of three Sports Authority spaces, which aggregated 130,000 square feet and denoted around 1.3% of comparable center space, adversely affected the leasing and occupancy figures.
Liquidity
Taubman Centers exited fourth-quarter 2016 with cash and cash equivalents of $40.6 million, down from $206.6 million recorded at year-end 2015.
Guidance
Taubman Centers introduced its guidance for 2017. The company projects 2017 FFO per share in the range of $3.67–$3.82. The full-year FFO per share guidance is backed by assumptions of comparable center NOI growth, excluding lease cancellation income, of about 3.5% for the year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter.
Taubman Centers, Inc. Price and Consensus
Taubman Centers, Inc. Price and Consensus | Taubman Centers, Inc. Quote
VGM Scores
At this time, Taubman Centers' stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'C'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.