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MAA to Post Q2 Earnings: Can the Stock Pull Off a Surprise?
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Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred as MAA, is slated to report second-quarter 2017 results on Jul 26, after the market closes.
Last quarter, the Memphis, TN-based residential real estate investment trust (REIT) delivered a positive surprise with respect to funds from operations (FFO) per share of 1.39%. The quarterly results reflected growth in same-store portfolio net operating income (NOI) and rise in average effective rent per unit for the same-store portfolio.
Over the trailing four quarters, the company beat the Zacks Consensus Estimate on three occasions and met estimate in another, with an average beat of around 1.03%. The graph below depicts this surprise history:
Mid-America Apartment Communities, Inc. Price and EPS Surprise
Let’s see how things are shaping up for MAA prior to this announcement.
Factors to Consider
MAA enjoys a diverse and balanced portfolio with a presence in around 39 Metropolitan Statistical Areas (MSAs). The portfolio is diversified in terms of markets, submarkets, product types and price points. Also, this apartment REIT resorts to opportunistic investments in order to maintain the right product mix and augment the number of apartment communities in vibrant markets.
In the second quarter, the company’s performance is anticipated to be driven by healthy demand across its markets amid job market gains. Resident retention is likely to remain high. Moreover, MAA made concerted efforts on Post Properties merger integration, and the company is likely to experience improved operating efficiency and progress in NOI margin.
However, increased level of new supply is expected to have a dampening impact on the company’s performance. In fact, new lease pricing is anticipated to remain challenged in the quarter to be reported.
For the second quarter, MAA projects FFO per share in the range of $1.36–$1.46 per share. The Zacks Consensus Estimate for the same is currently pegged at $1.45.
However, MAA’s activities during the quarter failed to gain analysts’ confidence. Consequently, the Zacks Consensus Estimate remained unchanged over the last 60 days.
Earnings Whispers
Our proven model does not conclusively show that MAA will likely beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for MAA is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MAA’s Zacks Rank #3 increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a few stocks in the REIT sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:
CyrusOne Inc. , scheduled to release earnings on Aug 2, has a Zacks Rank #2 and an Earnings ESP of +2.70%.
Piedmont Office Realty Trust, Inc. (PDM - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +2.27% and a Zacks Rank #3.
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.
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Image: Bigstock
MAA to Post Q2 Earnings: Can the Stock Pull Off a Surprise?
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred as MAA, is slated to report second-quarter 2017 results on Jul 26, after the market closes.
Last quarter, the Memphis, TN-based residential real estate investment trust (REIT) delivered a positive surprise with respect to funds from operations (FFO) per share of 1.39%. The quarterly results reflected growth in same-store portfolio net operating income (NOI) and rise in average effective rent per unit for the same-store portfolio.
Over the trailing four quarters, the company beat the Zacks Consensus Estimate on three occasions and met estimate in another, with an average beat of around 1.03%. The graph below depicts this surprise history:
Mid-America Apartment Communities, Inc. Price and EPS Surprise
Mid-America Apartment Communities, Inc. Price and EPS Surprise | Mid-America Apartment Communities, Inc. Quote
Let’s see how things are shaping up for MAA prior to this announcement.
Factors to Consider
MAA enjoys a diverse and balanced portfolio with a presence in around 39 Metropolitan Statistical Areas (MSAs). The portfolio is diversified in terms of markets, submarkets, product types and price points. Also, this apartment REIT resorts to opportunistic investments in order to maintain the right product mix and augment the number of apartment communities in vibrant markets.
In the second quarter, the company’s performance is anticipated to be driven by healthy demand across its markets amid job market gains. Resident retention is likely to remain high. Moreover, MAA made concerted efforts on Post Properties merger integration, and the company is likely to experience improved operating efficiency and progress in NOI margin.
However, increased level of new supply is expected to have a dampening impact on the company’s performance. In fact, new lease pricing is anticipated to remain challenged in the quarter to be reported.
For the second quarter, MAA projects FFO per share in the range of $1.36–$1.46 per share. The Zacks Consensus Estimate for the same is currently pegged at $1.45.
However, MAA’s activities during the quarter failed to gain analysts’ confidence. Consequently, the Zacks Consensus Estimate remained unchanged over the last 60 days.
Earnings Whispers
Our proven model does not conclusively show that MAA will likely beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for MAA is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MAA’s Zacks Rank #3 increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a few stocks in the REIT sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:
Liberty Property Trust , slated to release second-quarter results on Jul 25, has an Earnings ESP of +1.61% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CyrusOne Inc. , scheduled to release earnings on Aug 2, has a Zacks Rank #2 and an Earnings ESP of +2.70%.
Piedmont Office Realty Trust, Inc. (PDM - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +2.27% and a Zacks Rank #3.
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.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>