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Vornado Realty Third Quarter Earnings Preview
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VNO
On Thursday, November 1, 2012, Vornado Realty (NYSE:VNO) will release its third quarter earnings. In the past month, expectations have risen for the upcoming results. The consensus analyst estimate has risen from $1.16 per share to the current projection of earnings of $1.18 per share.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: This is an increase from $1.16 three months ago. Analysts are expecting earnings of $4.96 per share for the fiscal year.
Revenue for the quarter is expected to be $659 million, short of last year's reported figure of $749.3 million by 12%. Revenue for the fiscal year is expected to come in at $2.73 billion.
Company Performance: The past three quarters have marked a decline in revenue. It dropped 44% to $58.7 million in second quarter. Prior to that, the figure declined 78.2% in the first quarter and 73% in the fourth quarter of the last fiscal year.
Despite being profitable for the last eight quarters, the company has seen net income slide backward over the past four quarters by an average of 54.6% year-over-year.
Compared to the industry average of 14.28, VNO's P/E ratio of 40.9 is quite high. This could mean that the market is expecting big things over the next few months or years. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Profit With The Power Of Price-To-Earnings
Since July 31, 2012, the stock price has dipped 4.4% to $79.79 from $83.50.
The Competition: Vornado Realty Trust is a real estate investment trust that conducts its business through Vornado Realty L.P. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the real estate operations industry is SL Green (SLG).
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: This is an increase from $1.16 three months ago. Analysts are expecting earnings of $4.96 per share for the fiscal year.
Revenue for the quarter is expected to be $659 million, short of last year's reported figure of $749.3 million by 12%. Revenue for the fiscal year is expected to come in at $2.73 billion.
Company Performance: The past three quarters have marked a decline in revenue. It dropped 44% to $58.7 million in second quarter. Prior to that, the figure declined 78.2% in the first quarter and 73% in the fourth quarter of the last fiscal year.
Compared to the industry average of 14.28, VNO's P/E ratio of 40.9 is quite high. This could mean that the market is expecting big things over the next few months or years. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Profit With The Power Of Price-To-Earnings
Since July 31, 2012, the stock price has dipped 4.4% to $79.79 from $83.50.
The Competition: Vornado Realty Trust is a real estate investment trust that conducts its business through Vornado Realty L.P. They have grown a bit more optimistic about the stock, as the number of buy ratings has inched up over the past three months.
The company's closest competitor in the real estate operations industry is SL Green (SLG).
by
Investopedia Staff
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