A month has gone by since the last earnings report for Highwoods Properties, Inc. (HIW - Free Report) . Shares have added about 7.2% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is HIW due for a pullback? Before we dive into how investors and analysts have reacted as 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.
Highwoods Properties' Q1 FFO & Revenues Beat Estimates
Highwoods Properties reported first-quarter 2018 FFO of 85 cents per share, beating the Zacks Consensus Estimate of 82 cents. It also compared favorably with the year-ago tally of 80 cents.
Results indicate growth in same-property cash NOI and higher net effective rents for second-generation office space.
Total revenues for the quarter rose 6.2% year over year to $180 million. Moreover, the top line outpaced the Zacks Consensus Estimate of $177 million.
Quarter in Detail
Highwoods leased 857,000 square feet of second-generation office space during the first quarter. Same-property cash NOI climbed 2.9% year over year.
During the reported quarter, the company acquired two development parcels, spanning nine acres in CBD Nashville, for a total price of $50.3 million.
The company also issued 10-year notes worth $350 million at an effective interest rate of 4.06%. Notably, it did not issue any shares under the ATM program.
As of Mar 31, 2018, Highwoods had $31 million of cash and cash-equivalents compared with $3.3 million reported as of Dec 31, 2017.
2018 Outlook Raised
Highwoods expects 2018 FFO per share of $3.37-$3.47, up from the previous range of $3.35-$3.47.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter compared to one lower.
At this time, HIW has an average Growth Score of C, however its Momentum is doing a bit better with a B. 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 C. 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 more suitable for momentum investors than growth investors.
Estimates have been broadly trending upward for the stock and the magnitude of these revisions indicates a downward shift. Notably, HIW has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.