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S&P 500 (NYSE:SPY) component Equity Residential (NYSE:EQR) reported a lower net income in second quarter, missing analysts’ estimates. Equity Residential is a real estate investment trust company that acquires and manages apartment properties in top growth markets in the United States.
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Equity Residential Earnings Cheat Sheet
Results: Net income for Equity Residential fell to $103.3 million (33 cents per share) vs. $555.9 million ($1.85 per share) a year earlier. This is a decline of 81.4% from the year-earlier quarter.
Revenue: Rose 13.2% to $543.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Equity Residential fell short of the mean analyst estimate of 68 cents per share. Analysts were expecting revenue of $537.9 million.
Quoting Management: “2012 will be another very good year for Equity Residential,” said David J. Neithercut, Equity Residential’s President and CEO. “Apartment fundamentals are extremely positive and, as expected, we should deliver same store revenue growth for the full year of around 5.5%, which will lead to another very strong year of same store net operating income performance in excess of 7%. Longer term, we expect fundamentals to remain favorable and for continued operating performance above historical levels.”
The company has fallen short of estimates for two consecutive quarters. In the first quarter, it missed expectations by one cent with net income of 61 cents versus a mean estimate of net income of 62 cents per share.
Net income has increased 1128.5% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 5481% from the year-earlier quarter.
Looking Forward: The average estimate for the third quarter is steady at 71 cents a share. For the fiscal year, the average estimate has moved down from $2.74 a share to $2.72 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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