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Why Is Cousins Properties (CUZ) Down 7.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Cousins Properties (CUZ - Free Report) . Shares have lost about 7.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cousins Properties 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.
Cousins Properties Misses Q4 FFO Estimates, Guides Up
Cousins Properties reported fourth-quarter 2019 FFO per share (before TIER transaction costs) of 73 cents, missing the Zacks Consensus Estimate of 74 cents by a whisker. However, the figure improved from the prior-year quarter’s 67 cents.
Quarterly results reflect growth in rental property revenues, though increase in general and administrative expenses played spoilsport. The company expects strong fundamentals in its Sunbelt markets to keep driving internal and external growth, based on which it raised the 2020 FFO guidance.
Rental property revenues for the quarter came in at $189.1 million, compared with $119.6 million in the year-ago quarter. The figure also outpaced the Zacks Consensus Estimate of $183.6 million.
For 2019, FFO per share (before TIER transaction costs) was $2.94, higher than the prior-year tally of $2.51. Full-year rental property revenues came in at $628.7 million, up 35.7% year over year.
Quarter in Detail
Cousins Properties executed leases for 561,651 square feet of office space during the December quarter. Same-property NOI, on a cash basis, increased 6% from the year-ago quarter. Moreover, second-generation net rent per square foot (cash basis) increased 12.6%. Weighted average occupancy for the company’s same-property portfolio of 91.1% for the quarter ended Dec 31, 2019, expanded 20 basis points from the prior quarter.
Cousins Properties exited the fourth quarter with cash and cash equivalents of around $15.6 million compared with the $2.5 million recorded as of Dec 31, 2018.
2020 Outlook
Cousins Properties raised its 2020 FFO per share outlook to $2.72-$2.86 from $2.71-$2.85.
The company’s updated earnings guidance takes into account 5% same property NOI growth along with a new development start in Phoenix.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Cousins Properties has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cousins Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Cousins Properties (CUZ) Down 7.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Cousins Properties (CUZ - Free Report) . Shares have lost about 7.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cousins Properties 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.
Cousins Properties Misses Q4 FFO Estimates, Guides Up
Cousins Properties reported fourth-quarter 2019 FFO per share (before TIER transaction costs) of 73 cents, missing the Zacks Consensus Estimate of 74 cents by a whisker. However, the figure improved from the prior-year quarter’s 67 cents.
Quarterly results reflect growth in rental property revenues, though increase in general and administrative expenses played spoilsport. The company expects strong fundamentals in its Sunbelt markets to keep driving internal and external growth, based on which it raised the 2020 FFO guidance.
Rental property revenues for the quarter came in at $189.1 million, compared with $119.6 million in the year-ago quarter. The figure also outpaced the Zacks Consensus Estimate of $183.6 million.
For 2019, FFO per share (before TIER transaction costs) was $2.94, higher than the prior-year tally of $2.51. Full-year rental property revenues came in at $628.7 million, up 35.7% year over year.
Quarter in Detail
Cousins Properties executed leases for 561,651 square feet of office space during the December quarter. Same-property NOI, on a cash basis, increased 6% from the year-ago quarter. Moreover, second-generation net rent per square foot (cash basis) increased 12.6%.
Weighted average occupancy for the company’s same-property portfolio of 91.1% for the quarter ended Dec 31, 2019, expanded 20 basis points from the prior quarter.
Cousins Properties exited the fourth quarter with cash and cash equivalents of around $15.6 million compared with the $2.5 million recorded as of Dec 31, 2018.
2020 Outlook
Cousins Properties raised its 2020 FFO per share outlook to $2.72-$2.86 from $2.71-$2.85.
The company’s updated earnings guidance takes into account 5% same property NOI growth along with a new development start in Phoenix.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Cousins Properties has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cousins Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.