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Prologis (PLD) Q2 FFO In Line With Estimates, Revenues Lag

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Have you been eager to see how Prologis Inc. (PLD - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco, CA – based industrial real estate investment trust’s (REIT) earnings release this morning:

An in-line FFO

Prologis came out with core funds from operations ("FFO") per share of 71 cents, in line with the Zacks Consensus Estimate.

The company experienced weak top line in the quarter. However, period-end occupancy remained high.

How Was the Earnings Surprise Trend?

Prologis has a decent earnings surprise history. Before posting an in-line FFO per share in Q2, the company delivered positive surprise in three out of prior four quarters and in-line result in the other occasion, as shown in the chart below.

Prologis, Inc. Price and EPS Surprise

Prologis, Inc. Price and EPS Surprise | Prologis, Inc. Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.3% in the trailing four quarters.

Revenue Came In Lower Than Expected

Prologis’ rental revenues amounted to $544.7 million, which missed the Zacks Consensus Estimate of $560.6 million. It also compared unfavorably with the year-ago number of $ 576.4 million.

Key Developments to Note:

Prologis increased and narrowed its guidance for 2018 core FFO per share and same store net operating income (NOI). The company now projects core FFO per share in the range of $2.98-$3.02, compared with prior guidance of $2.95-$3.01. This denotes an increase of 2 cents per share at the midpoint.

What Zacks Rank Says

Prologis currently has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Check back later for our full write up on this PLD earnings report!

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