Tanger Factory Outlet Centers Earnings Preview

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Tanger Factory Outlet Centers (NYS: SKT) only managed to meet estimates last quarter, but investors hope that it will surpass expectations this quarter. The company will unveil its latest earnings Tuesday. Tanger Factory Outlet Centers is a fully-integrated, self-administered, and self-managed real estate investment trust that focuses exclusively on developing, acquiring, owning, operating, and managing factory outlet shopping centers.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Tanger Factory Outlet Centers with seven of 12 analysts rating it hold. Analysts like Tanger Factory Outlet Centers better than competitor Equity One overall. Three out of 16 analysts rate Equity One a buy compared with five of 12 for Tanger Factory Outlet Centers. Analysts still rate the stock a hold, but they are a bit more wary about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $69.1 million in revenue this quarter. That would represent a rise of 5.9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.33 per share. Estimates range from $0.31 to $0.34.

What our community says:
Most CAPS All-Stars are skeptical of Tanger Factory Outlet Centers' prospects, with 59% assigning it an "underperform" rating. The community is divided on the stock with 46.7% Fools giving it an "outperform" rating and 53.3% an "underperform" rating. Fools are skeptical of Tanger Factory Outlet Centers, though the message boards have been quiet lately with only 48 posts in the past 30 days. Tanger Factory Outlet Centers' bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
Tanger Factory Outlet Centers' profit has risen year over year by an average of more than twofold. The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Net Margin

13.3%

18%

18.7%

8.3%

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At the time this article was published

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