It has been about a month since the last earnings report for DDR . Shares have added about 4.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DDR 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 drivers.
DDR's Q2 FFO Surpasses Estimates, Up Y/Y, Liquidity Down
DDR’s second-quarter 2018 operating FFO per share of 49 cents surpassed the Zacks Consensus Estimate of 47 cents. Moreover, the figure compares favorably with the prior-year quarter figure of 59 cents.
DDR completed the spin-off of RVI that enabled it to hold a portfolio of high-growth 78 assets. However, spin-off transaction costs amounting to $31.4 million impacted its results.
The company generated revenues of $204.3 million for the second quarter, surpassing the Zacks Consensus Estimate of $200.5 million. However, the top line fell short of $227.4 million recorded in the year-ago quarter.
Quarter in Detail
Same-store net operating income (NOI) for the total portfolio on a pro-rata basis was 1.4%. Further, the company, on a pro-rata basis for the total portfolio for the quarter, generated new leasing and renewal leasing spreads of 24.7% and 5.7%, respectively, in the second quarter.
DDR reported a leased rate of 93.1% as of Jun 30, 2018, compared with 93.2% in the prior-year quarter, on a pro-rata basis for the total portfolio.
Annualized base rent per occupied square-foot for the total portfolio was $17.36 on a pro-rata basis as of Jun 30, 2018, up from $17.08 recorded a year ago.
Notably, DDR sold 17 shopping centers and land parcels for a total price of $421.1 million during the quarter under review, thereby aggregating $202.7 million at DDR's share.
DDR exited the second quarter with $32.07 million in cash compared with $92.61 million as of Dec 31, 2017.
Outlook
DDR reiterated its previously-issued guidance.
For third-quarter 2018, the company continues to expect Operating FFO to be at least 30 cents. Net income attributable to shareholders is expected to be four to six cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, DDR 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 C on the value side, putting it in the middle 20% 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 value investors.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise DDR has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is DDR (DDR) Up 4.3% Since Last Earnings Report?
It has been about a month since the last earnings report for DDR . Shares have added about 4.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DDR 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 drivers.
DDR's Q2 FFO Surpasses Estimates, Up Y/Y, Liquidity Down
DDR’s second-quarter 2018 operating FFO per share of 49 cents surpassed the Zacks Consensus Estimate of 47 cents. Moreover, the figure compares favorably with the prior-year quarter figure of 59 cents.
DDR completed the spin-off of RVI that enabled it to hold a portfolio of high-growth 78 assets. However, spin-off transaction costs amounting to $31.4 million impacted its results.
The company generated revenues of $204.3 million for the second quarter, surpassing the Zacks Consensus Estimate of $200.5 million. However, the top line fell short of $227.4 million recorded in the year-ago quarter.
Quarter in Detail
Same-store net operating income (NOI) for the total portfolio on a pro-rata basis was 1.4%. Further, the company, on a pro-rata basis for the total portfolio for the quarter, generated new leasing and renewal leasing spreads of 24.7% and 5.7%, respectively, in the second quarter.
DDR reported a leased rate of 93.1% as of Jun 30, 2018, compared with 93.2% in the prior-year quarter, on a pro-rata basis for the total portfolio.
Annualized base rent per occupied square-foot for the total portfolio was $17.36 on a pro-rata basis as of Jun 30, 2018, up from $17.08 recorded a year ago.
Notably, DDR sold 17 shopping centers and land parcels for a total price of $421.1 million during the quarter under review, thereby aggregating $202.7 million at DDR's share.
DDR exited the second quarter with $32.07 million in cash compared with $92.61 million as of Dec 31, 2017.
Outlook
DDR reiterated its previously-issued guidance.
For third-quarter 2018, the company continues to expect Operating FFO to be at least 30 cents. Net income attributable to shareholders is expected to be four to six cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, DDR 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 C on the value side, putting it in the middle 20% 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 value investors.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise DDR has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.