Equity Residential Beats on EPS but GAAP Results Lag
Equity Residential (NYS: EQR) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Equity Residential met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins improved, and net margins dropped.
Equity Residential tallied revenue of $519.3 million. The 14 analysts polled by S&P Capital IQ wanted to see sales of $520.3 million. Sales were 10% higher than the prior-year quarter's $515.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.33. The four earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.33 for Q4 were 49% lower than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 65.5%, 470 basis points better than the prior-year quarter. Operating margin was 31.2%, 560 basis points better than the prior-year quarter. Net margin was 19.7%, 2,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $527.5 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $1.94.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 136 members out of 252 rating the stock outperform, and 116 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Equity Residential a green thumbs-up, and 41 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Equity Residential is hold, with an average price target of $58.57.
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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.
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