Advertisement
U.S. markets open in 4 hours 14 minutes
  • S&P Futures

    5,209.00
    -5.75 (-0.11%)
     
  • Dow Futures

    39,197.00
    -26.00 (-0.07%)
     
  • Nasdaq Futures

    18,204.50
    -27.00 (-0.15%)
     
  • Russell 2000 Futures

    2,043.90
    -5.90 (-0.29%)
     
  • Crude Oil

    82.62
    -0.10 (-0.12%)
     
  • Gold

    2,155.80
    -8.50 (-0.39%)
     
  • Silver

    25.10
    -0.16 (-0.65%)
     
  • EUR/USD

    1.0850
    -0.0027 (-0.25%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.44
    +0.11 (+0.77%)
     
  • GBP/USD

    1.2687
    -0.0041 (-0.32%)
     
  • USD/JPY

    150.4480
    +1.3500 (+0.91%)
     
  • Bitcoin USD

    63,738.96
    -4,028.27 (-5.94%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,717.97
    -4.58 (-0.06%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

Acadia Realty Trust (AKR) Q3 Earn FFO ings Lag Estimates

Abbott (ABT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Acadia Realty Trust (AKR) came out with quarterly funds from operations (FFO) of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to FFO of $0.37 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of -2.78%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.33 per share when it actually produced FFO of $0.34, delivering a surprise of 3.03%.

Over the last four quarters, the company has surpassed consensus FFO estimates two times.

Acadia Realty Trust, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $66.07 million for the quarter ended September 2018, surpassing the Zacks Consensus Estimate by 26.17%. This compares to year-ago revenues of $62.68 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Acadia Realty Trust shares have added about 0.5% since the beginning of the year versus the S&P 500's gain of 2.5%.

What's Next for Acadia Realty Trust?

While Acadia Realty Trust has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Acadia Realty Trust was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.37 on $55.12 million in revenues for the coming quarter and $1.38 on $207.77 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Retail is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Acadia Realty Trust (AKR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement