Why Is Boston Properties (BXP) Down 4.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for Boston Properties, Inc. BXP. Shares have lost about 4.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Boston Properties Q1 FFO Lags Estimates, Revenues Top
Boston Properties’ first-quarter 2017 FFO per share of $1.48 missed the Zacks Consensus Estimate of $1.50. The figure also came lower than the year-ago quarter tally of $1.63.
However, quarterly FFO per share equaled the mid-point of the company’s previously guided range of $1.47–$1.49. Notably, the prior-year quarter result included lease termination income from a tenant in New York City, aggregating around $45.0 million or $0.26 per share.
Total revenue during the quarter decreased 5.1% year over year to $632.2 million. However, the revenue figure comfortably surpassed the Zacks Consensus Estimate of $618.4 million. The quarterly decrease was primarily due to a fall in rental revenues. Rental revenues were down 6.1% year over year to $503.6 million.
Property Update
As of Mar 31, 2017, Boston Properties’ portfolio comprised 174 properties, covering a total of around 47.7 million square feet of space. This included eight under-development properties, covering an area of 4.0 million square feet.
The overall operating portfolio, comprising 163 properties (excluding two residential properties and hotel), was 90.4% leased as of Mar 31, 2017.
Liquidity
Boston Properties exited first-quarter 2017 with cash and cash equivalents of around $302.9 million, down from $356.9 million as of year-end 2016.
Outlook
Boston Properties updated its full-year 2017 FFO per share guidance to $6.15–$6.23 from $6.13–$6.23 provided earlier.
The company projects second-quarter 2017 FFO per share in the range of $1.61–$1.63.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been six revisions higher for the current quarter.
Boston Properties, Inc. Price and Consensus
Boston Properties, Inc. Price and Consensus | Boston Properties, Inc. Quote
VGM Scores
At this time, Boston Properties' stock has an average Growth Score of 'C', however its Momentum is doing a lot better with an 'A'. However, 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.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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