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Why Is Macerich (MAC) Down 2.4% Since the Last Earnings Report?

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More than a month has gone by since the last earnings report for The Macerich Company (MAC - Free Report) . Shares have lost about 2.4% 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 of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Macerich Q2 FFO & Revenues Beat Estimates, View Intact

Macerich came up with second-quarter 2017 FFO per share of $0.98, surpassing the Zacks Consensus Estimate of $0.94. The prior-year quarter’s FFO per share figure was $1.02. The quarter witnessed modest improvement in same-center NOI.

The company posted revenues of $247.4 million for the quarter, surpassing the Zacks Consensus Estimate $227.7 million. However, it came in 4.8% lower than the prior-year quarter figure.

Quarter in Detail

As of Jun 30, 2017, mall portfolio occupancy contracted 60 basis points (bps) year over year to 94.4%. Mall tenant annual sales increased to $646 per square foot from $626 at the end of second-quarter 2016. Re-leasing spreads for the year ended Jun 30, 2017 were up 18.5%. Also, same-centers NOI grew around 3.3% from the prior-year comparable period.

As of Jun 30, 2017, Macerich’s cash and cash equivalents were $87.1 million, declining from $94 million as of Dec 31, 2016.

Share Repurchase Activity

Taking advantage of the price dislocation in the markets, Macerich repurchased and retired 687,494 shares at an average price of $59.09.

2017 Guidance

Macerich has reaffirmed its guidance for 2017. The retail REIT expects FFO per share in the range of $3.90–$4.00 for the year.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed a downward trend in fresh estimates. There has been two revisions lower for the current quarter.

The Macerich Company Price and Consensus

VGM Scores

At this time, Macerich's stock has a poor Growth Score of F, however its Momentum is doing a bit better with a C. 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 aggregte 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 that the stock is solely suitable for momentum investors.

Outlook

Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.


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