Fool Cheat Sheet: Associated Estates Realty Earnings

Associated Estates Realty (NYS: AEC) reported earnings Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Associated Estates Realty missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP loss per share expanded.

Gross margins expanded, operating margins improved, net margins dropped.

Revenue details
Associated Estates Realty booked revenue of $42.7 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $43.8 million. Sales were 6.4% lower than the prior-year quarter's $45.6 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.05. The four earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.05 for Q4 against -$0.03 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.3%, 710 basis points better than the prior-year quarter. Operating margin was 15.0%, 130 basis points better than the prior-year quarter. Net margin was -5.2%, 220 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $43.6 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $180.0 million. The average EPS estimate is -$0.05.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Associated Estates Realty is buy, with an average price target of $19.56.

Over the decades, small-cap stocks, like Associated Estates Realty have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story