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Cousins Properties (CUZ) Down 5.7% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Cousins Properties Incorporated (CUZ - Free Report) . Shares have lost about 5.7% 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.
Cousins Properties Q4 FFO in Line, Revenues Up Y/Y
Cousins Properties reported fourth-quarter 2016 FFO per share of $0.07, compared with $0.23 reported in the year-ago period. However, FFO per share for the fourth quarter, excluding special items, were $0.15, in line with the Zacks Consensus Estimate.
The special items in the fourth quarter included around $26.5 million of Parkway transaction costs and loss on extinguishment of debt of $5.2 million. Notably, in Oct 2016, Cousins Properties and Parkway merged their operations and then spun off the Houston assets of this combined entity into a separate public REIT.
Total revenue for the quarter came in at $114.3 million, compared with $49.9 million reported in the prior-year period. Additionally, rental property revenues were $111.4 million, compared with $47.3 million in the year-ago quarter. The Zacks Consensus Estimate was pegged at $109 million.
For full-year 2016, the company reported FFO per share before special items of $0.77, down from $0.89 reported a year ago. Total revenue for the year came in at $259.2 million, up from $204.4 million a year ago. Moreover, rental property revenues were up 27.3% year over year to $249.8 million.
Quarter in Detail
Cousins Properties leased or renewed 761,087 square feet of office space in the quarter. Same property net operating income, on cash basis, rose 7.1% year over year. Moreover, second generation net rent per square foot (cash basis) moved 14.7% north.
Finally, Cousins Properties exited the quarter with cash and cash equivalents of $35.7 million, up from $2.0 million at the end of the prior year.
Parkway Transactions
On Oct 6, 2016, Cousins Properties and Parkway merged their operations, with shareholders of Parkway receiving 1.63 shares of Cousins’ stock for each share of Parkway stock. Subsequent to this, the company concluded the spin-off of the combined Houston assets of both companies into New Parkway, through a special taxable dividend.
The spin-off process resulted in each shareholder of Cousins receiving one share of New Parkway for every eight shares of Cousins’ common or limited voting preferred stock held on Oct 6, 2016.
Following this, the company entered into a series of transactions related to Parkway. This included the sale of two Liberty Place in Philadelphia, for a gross price of $219 million and repayment of a related $98.3 million mortgage loan. Further, Lincoln Place in Miami was sold for a gross price of $80 million.
2017 Outlook
Cousins Properties projects 2017 FFO per share in the range of $0.56–$0.62.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an downward trend for fresh estimates. There has been one revision lower for the current quarter.
Cousins Properties Incorporated Price and Consensus
At this time, Cousins Properties' stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with an 'D'. Following the exact same course, 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
While estimates have been trending downward for the stock, the magnitude of this revision is 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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Cousins Properties (CUZ) Down 5.7% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Cousins Properties Incorporated (CUZ - Free Report) . Shares have lost about 5.7% 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.
Cousins Properties Q4 FFO in Line, Revenues Up Y/Y
Cousins Properties reported fourth-quarter 2016 FFO per share of $0.07, compared with $0.23 reported in the year-ago period. However, FFO per share for the fourth quarter, excluding special items, were $0.15, in line with the Zacks Consensus Estimate.
The special items in the fourth quarter included around $26.5 million of Parkway transaction costs and loss on extinguishment of debt of $5.2 million. Notably, in Oct 2016, Cousins Properties and Parkway merged their operations and then spun off the Houston assets of this combined entity into a separate public REIT.
Total revenue for the quarter came in at $114.3 million, compared with $49.9 million reported in the prior-year period. Additionally, rental property revenues were $111.4 million, compared with $47.3 million in the year-ago quarter. The Zacks Consensus Estimate was pegged at $109 million.
For full-year 2016, the company reported FFO per share before special items of $0.77, down from $0.89 reported a year ago. Total revenue for the year came in at $259.2 million, up from $204.4 million a year ago. Moreover, rental property revenues were up 27.3% year over year to $249.8 million.
Quarter in Detail
Cousins Properties leased or renewed 761,087 square feet of office space in the quarter. Same property net operating income, on cash basis, rose 7.1% year over year. Moreover, second generation net rent per square foot (cash basis) moved 14.7% north.
Finally, Cousins Properties exited the quarter with cash and cash equivalents of $35.7 million, up from $2.0 million at the end of the prior year.
Parkway Transactions
On Oct 6, 2016, Cousins Properties and Parkway merged their operations, with shareholders of Parkway receiving 1.63 shares of Cousins’ stock for each share of Parkway stock. Subsequent to this, the company concluded the spin-off of the combined Houston assets of both companies into New Parkway, through a special taxable dividend.
The spin-off process resulted in each shareholder of Cousins receiving one share of New Parkway for every eight shares of Cousins’ common or limited voting preferred stock held on Oct 6, 2016.
Following this, the company entered into a series of transactions related to Parkway. This included the sale of two Liberty Place in Philadelphia, for a gross price of $219 million and repayment of a related $98.3 million mortgage loan. Further, Lincoln Place in Miami was sold for a gross price of $80 million.
2017 Outlook
Cousins Properties projects 2017 FFO per share in the range of $0.56–$0.62.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an downward trend for fresh estimates. There has been one revision lower for the current quarter.
Cousins Properties Incorporated Price and Consensus
Cousins Properties Incorporated Price and Consensus | Cousins Properties Incorporated Quote
VGM Scores
At this time, Cousins Properties' stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with an 'D'. Following the exact same course, 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
While estimates have been trending downward for the stock, the magnitude of this revision is 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.