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Why Is Highwoods Properties (HIW) Up 2.5% Since the Last Earnings Report?

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About a month has gone by since the last earnings report for Highwoods Properties, Inc. (HIW - Free Report) . Shares have added about 2.5% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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.

Highwoods Properties Q2 FFO & Revenues Beat Estimates

Highwoods reported second-quarter 2017 FFO of $0.90 per share, beating the Zacks Consensus Estimate by $0.05. This also compares favorably with the year-ago number of $0.82.

Results reflect robust growth in same-property NOI and strong leasing metrics.

Total revenue for the quarter increased 6.2% year over year to $177 million. The number also surpassed the Zacks Consensus Estimate of $171 million.

Quarter in Detail

Highwoods leased 575,000 square feet of second-generation office space during the quarter. Same property cash NOI rose 5.3% year over year.

The company announced development projects worth $99 million, which is 77% pre-leased. Also, the company put in place $208 million development in service, which is 96% leased.

As of Jun 30, 2017, Highwoods had $13.3 million of cash and cash equivalents compared with $49.5 million as of Dec 31, 2016.

2017 Outlook

Highwoods revised its 2017 FFO per share guidance range to $3.33–$3.38 from the previous range of $3.29–$3.40.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the past month as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Highwoods Properties' stock has an average Growth Score of C, while it is lagging a lot on the momentum front with D. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Zacks' style scores indicate that the company's stock is solely suitable for growth investors.


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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