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Macerich (MAC) Q4 Earnings: What's in Store for the Stock?
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Retail real estate investment trust (“REIT”) The Macerich Company (MAC - Free Report) is expected to report fourth quarter and 2016 results on Feb 6, 2017, after market close. Last quarter, the company delivered in-line results.
For the trailing four quarters, Macerich posted an average positive surprise of 2.85%, beating estimates in three out of four occasions. The Zacks Consensus Estimate for the fourth quarter funds from operations (“FFO”) is currently pegged at $1.16.
Let’s see how things have shaped up for this announcement.
Apart from competing with other retail properties, Macerich faces competition from alternative retail channels such as catalogs and e-Commerce websites. While the company is striving hard to counter such pressure through various moves, this still poses a huge challenge before the company.
Moreover, substantial assets concentration in California and Arizona and any rise in interest rate are concerns before the company. Rise in interest rate will restrict its ability to refinance existing debt, while the interest cost on new debt would go up.
However, the Santa Monica, CA-based company enjoys a portfolio of premium malls in the vibrant U.S. markets. Further, the presence of well-capitalized retailers in its roaster enabled the company to maintain a stable source of rent over the past quarters.
However, over the past 30 days, Macerich’s fourth-quarter estimates declined 0.9% to $1.16.
Earnings Whispers
Our proven model does not conclusively show that Macerich will beat on earnings 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 #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: Both the Most Accurate estimate and the Zacks Consensus Estimate are on par, which translates into an Earnings ESP of 0.00%.
Zacks Rank: Macerich currently has a Zacks Rank #4 (Sell).
As it is 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 to Consider
Here are some REITs that you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Camden Property Trust (CPT - Free Report) , expected to release earnings results on Feb 7, has an Earnings ESP of +0.88% and a Zacks Rank #3.
CubeSmart (CUBE - Free Report) , expected to release earnings results on Feb 16, has an Earnings ESP of +2.70% 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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Macerich (MAC) Q4 Earnings: What's in Store for the Stock?
Retail real estate investment trust (“REIT”) The Macerich Company (MAC - Free Report) is expected to report fourth quarter and 2016 results on Feb 6, 2017, after market close. Last quarter, the company delivered in-line results.
For the trailing four quarters, Macerich posted an average positive surprise of 2.85%, beating estimates in three out of four occasions. The Zacks Consensus Estimate for the fourth quarter funds from operations (“FFO”) is currently pegged at $1.16.
Let’s see how things have shaped up for this announcement.
Macerich Company (The) Price and EPS Surprise
Macerich Company (The) Price and EPS Surprise | Macerich Company (The) Quote
Factors to Consider
Apart from competing with other retail properties, Macerich faces competition from alternative retail channels such as catalogs and e-Commerce websites. While the company is striving hard to counter such pressure through various moves, this still poses a huge challenge before the company.
Moreover, substantial assets concentration in California and Arizona and any rise in interest rate are concerns before the company. Rise in interest rate will restrict its ability to refinance existing debt, while the interest cost on new debt would go up.
However, the Santa Monica, CA-based company enjoys a portfolio of premium malls in the vibrant U.S. markets. Further, the presence of well-capitalized retailers in its roaster enabled the company to maintain a stable source of rent over the past quarters.
However, over the past 30 days, Macerich’s fourth-quarter estimates declined 0.9% to $1.16.
Earnings Whispers
Our proven model does not conclusively show that Macerich will beat on earnings 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 #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: Both the Most Accurate estimate and the Zacks Consensus Estimate are on par, which translates into an Earnings ESP of 0.00%.
Zacks Rank: Macerich currently has a Zacks Rank #4 (Sell).
As it is 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 to Consider
Here are some REITs that you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Camden Property Trust (CPT - Free Report) , expected to release earnings results on Feb 7, has an Earnings ESP of +0.88% and a Zacks Rank #3.
CubeSmart (CUBE - Free Report) , expected to release earnings results on Feb 16, has an Earnings ESP of +2.70% and a Zacks Rank #3.
Ashford Hospitality Prime, Inc. , expected to release earnings results on Feb 22, has an Earnings ESP of +16.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>