We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Duke Realty (DRE) to Post Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Duke Realty Corp. is scheduled to report first-quarter 2018 results on Apr 25, after the market closes. Revenues and funds from operations (FFO) are expected to decline on a year-over-year basis.
Last quarter, this commercial real estate investment trust (REIT) delivered in-line FFO per share. Results witnessed same-property net operating income growth on the back of decent rental growth.
The company exceeded the Zacks Consensus Estimate in three out of the trailing four quarters and met estimates on one occasion, with the average beat being 5.1%. The graph below depicts this surprise history:
Notably, Duke Realty’s fundamental strength has helped its shares gain 0.9% in the past three months, outperforming decline of 4.3% recorded by the industry.
Will the stock’s rally continue post the first-quarter earnings release? Let’s see how things are shaping up.
Factors That Might Influence Q1 Results
In recent years, Duke Realty has made concerted efforts to enhance its industrial portfolio. Admittedly, this asset class is witnessing improving fundamentals amid economic recovery and growth of e-commerce business. This is driving demand for warehouse space as companies are compelled to enhance and renovate their distribution and production platforms, which is helping the industrial real estate market to grow.
In fact, per a study by the commercial real estate services firm — CBRE Group Inc. — availability fell for 31 straight quarters to 7.3% for the U.S. industrial market in first-quarter 2018. The figure not only marked a contraction of 6 basis points (bps) sequentially but also a decline of 20 bps year over year, on average, across 50 markets that are followed by CBRE.
However, Duke Realty is enhancing its portfolio mix through continued divestitures, which includes the significant disposition of suburban office assets and medical office buildings. While such efforts are a strategic fit for the long term, the near-term dilutive effect on earnings cannot be bypassed.
Further, the company faces significant competition from developers, owners and operators of the commercial real estate. This influences its ability to attract and retain tenants at relatively higher rents than its competitors.
Moreover, over the past month, the Zacks Consensus Estimate of FFO per share for the first quarter remained unchanged at 30 cents, reflecting a lack of solid catalyst. Also, it points to a year-over-year decline of 6.3%.
Further, the Zacks Consensus Estimate for first-quarter revenues is pegged at $183.8 million, indicating a decline of 15.7% year over year.
Earnings Whispers
Our proven model does not conclusively show that Duke Realty will likely beat estimates this season. 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. However, that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Duke Realty is -1.70%.
Zacks Rank: Duke Realty has a Zacks Rank #3 that increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.
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:
Taubman Centers, Inc. , scheduled to release earnings on Apr 26, has an Earnings ESP of +0.47% and a Zacks Rank of 3.
Simon Property Group, Inc. (SPG - Free Report) , slated to release quarterly numbers on Apr 27, has an Earnings ESP of +0.32% and a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Duke Realty (DRE) to Post Q1 Earnings: What's in the Offing?
Duke Realty Corp. is scheduled to report first-quarter 2018 results on Apr 25, after the market closes. Revenues and funds from operations (FFO) are expected to decline on a year-over-year basis.
Last quarter, this commercial real estate investment trust (REIT) delivered in-line FFO per share. Results witnessed same-property net operating income growth on the back of decent rental growth.
The company exceeded the Zacks Consensus Estimate in three out of the trailing four quarters and met estimates on one occasion, with the average beat being 5.1%. The graph below depicts this surprise history:
Duke Realty Corporation Price and EPS Surprise
Duke Realty Corporation Price and EPS Surprise | Duke Realty Corporation Quote
Notably, Duke Realty’s fundamental strength has helped its shares gain 0.9% in the past three months, outperforming decline of 4.3% recorded by the industry.
Will the stock’s rally continue post the first-quarter earnings release? Let’s see how things are shaping up.
Factors That Might Influence Q1 Results
In recent years, Duke Realty has made concerted efforts to enhance its industrial portfolio. Admittedly, this asset class is witnessing improving fundamentals amid economic recovery and growth of e-commerce business. This is driving demand for warehouse space as companies are compelled to enhance and renovate their distribution and production platforms, which is helping the industrial real estate market to grow.
In fact, per a study by the commercial real estate services firm — CBRE Group Inc. — availability fell for 31 straight quarters to 7.3% for the U.S. industrial market in first-quarter 2018. The figure not only marked a contraction of 6 basis points (bps) sequentially but also a decline of 20 bps year over year, on average, across 50 markets that are followed by CBRE.
However, Duke Realty is enhancing its portfolio mix through continued divestitures, which includes the significant disposition of suburban office assets and medical office buildings. While such efforts are a strategic fit for the long term, the near-term dilutive effect on earnings cannot be bypassed.
Further, the company faces significant competition from developers, owners and operators of the commercial real estate. This influences its ability to attract and retain tenants at relatively higher rents than its competitors.
Moreover, over the past month, the Zacks Consensus Estimate of FFO per share for the first quarter remained unchanged at 30 cents, reflecting a lack of solid catalyst. Also, it points to a year-over-year decline of 6.3%.
Further, the Zacks Consensus Estimate for first-quarter revenues is pegged at $183.8 million, indicating a decline of 15.7% year over year.
Earnings Whispers
Our proven model does not conclusively show that Duke Realty will likely beat estimates this season. 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. However, that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Duke Realty is -1.70%.
Zacks Rank: Duke Realty has a Zacks Rank #3 that increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.
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:
PS Business Parks, Inc. , slated to release first-quarter results on Apr 24, has an Earnings ESP of +0.67% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Taubman Centers, Inc. , scheduled to release earnings on Apr 26, has an Earnings ESP of +0.47% and a Zacks Rank of 3.
Simon Property Group, Inc. (SPG - Free Report) , slated to release quarterly numbers on Apr 27, has an Earnings ESP of +0.32% and a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>