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Macerich (MAC) Down 2.5% Since Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Macerich Company (The) (MAC - Free Report) . Shares have lost about 2.5% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is MAC due for a breakout? 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 drivers.

Macerich Q1 FFO Beats Estimates, Revenues Fall Y/Y

Macerich delivered first-quarter 2018 FFO per share of 82 cents, beating the Zacks Consensus Estimate by a cent. However, the figure descended from 87 cents reported in the prior year quarter.

Results highlighted growth in re-leasing spreads and average rent per square foot. However, the company recorded lower portfolio occupancy.

The company posted revenues of $212.4 million for the first quarter, missing the Zacks Consensus Estimate of $215 million. Further, the figure came in 3.4% lower than the prior-year quarter figure.

Quarter in Detail

As of Mar 31, 2018, mall portfolio occupancy shrunk 30 basis points (bps) year over year to 94%. Mall tenant annual sales increased 7.4% year over year to $686 per square feet. Re-leasing spreads for the year ended Mar 31, 2018, increased 14.7%. Average rent per square foot ascended 3.8% to $58.44 from $56.31 as of Mar 31, 2017.

Also, same-center net operating income for the reported quarter inched up 0.07% from the prior-year period.

As of Mar 31, 2018, Macerich’s cash and cash equivalents summed $118.2 million, up from $91 million reported as of Dec 31, 2017.

Guidance

Macerich reaffirmed its guidance for 2018. The retail REIT expects FFO per share of $3.92-$4.02. Despite modest same center NOI growth in the first quarter, the company has reiterated its original full-year same-center NOI growth rate projection of 2-2.5%.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower.

Macerich Company (The) Price and Consensus

 

VGM Scores

At this time, MAC has a subpar Growth Score of D, however its Momentum is doing a lot better with an A. However, 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.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

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




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