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Vornado (VNO) Up 1.1% Since Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Vornado Realty Trust (VNO - Free Report) . Shares have added about 1.1% in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is VNO 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 drivers.

Vornado Realty Q4 FFO and Revenues Beat Estimates

Vornado reported fourth-quarter 2017 FFO per share of 98 cents, beating the Zacks Consensus Estimate of 93 cents. However, the figure came in lower than the prior-year quarter tally of $1.02.

Total revenues were $536.2 million in the reported quarter, surpassing the Zacks Consensus Estimate of $524.1 million. Moreover, total revenues increased 4.3% year over year.

Results reflect growth in occupancy and same-store NOI in the New York portfolio.

For full-year 2017, adjusted FFO per share was $3.73, well ahead of the year-ago tally of $3.59. This was backed by 4.0% year-over-year growth in total revenues to $2.1 billion.

Behind the Headline Numbers

In the New York portfolio, 319,000 square feet of office space and 39,000 square feet of retail space were leased in the reported quarter. Also, 118,000 square feet and 153,000 square feet of space in theMart and 555 California Street were leased, respectively.

At the quarter end, occupancy in the New York portfolio was 97.2%, up 30 basis points (bps) sequentially and 70 bps year over year. Occupancy in theMART was 98.6%, down 10 bps sequentially and 30 bps year over year. Further, occupancy in 555 California Street was 94.2%, unchanged sequentially and up 180 bps year over year.

During the fourth quarter, same-store NOI at share increased 2.8% year over year for the New York portfolio. The same for theMART grew 7.1% and 10.4% for 555 California Street, respectively, year over year.

As of Dec 31, 2017, Vornado had nearly $1.8 billion of cash and cash equivalents, up from $1.5 billion as of the prior-year end.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

Vornado Realty Trust Price and Consensus

 

Vornado Realty Trust Price and Consensus | Vornado Realty Trust Quote

VGM Scores

At this time, VNO has an average Growth Score of C and a grade with the same score on the momentum front. 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 suitable for growth and momentum investors.

Outlook

VNO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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