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AvalonBay Third Quarter Earnings
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AVB
AvalonBay Communities (NYSE:AVB) announced its results for the most recent quarter on October 24, 2012. AvalonBay Communities develops, acquires, and operates multifamily communities in barrier-to-entry markets in the United States.
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: Earnings: Quality Means Everything
The Numbers: AvalonBay posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported 89 cents per share versus the $1.40 per share estimate and revenues of $271.9 million versus the $257.3 million estimate. EPS rose 81.6% while revenue climbed 1.7% from the same period last year. AvalonBay's revenue has grown during each of the past four quarters on a year-over-year basis. AvalonBay reported profit of $8.7 million during the third quarter. According to the reported number, this is down 80.6% from last year's figures. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Management Quote: Commenting on the Company's results, Tim Naughton, CEO and President, said, "We had a strong third quarter as evidenced by 20% FFO per share growth. Operating fundamentals remain favorable as same-store NOI growth topped 7% for the sixth consecutive quarter and recently completed development communities continued to exceed our expectations."
A Look Back: Net income has increased more than threefold year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 1095.4% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. At $5.46 per share, the average estimate for the fiscal year has fallen from $5.48 90 days ago.
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: Earnings: Quality Means Everything
The Numbers: AvalonBay posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported 89 cents per share versus the $1.40 per share estimate and revenues of $271.9 million versus the $257.3 million estimate. EPS rose 81.6% while revenue climbed 1.7% from the same period last year. AvalonBay's revenue has grown during each of the past four quarters on a year-over-year basis. AvalonBay reported profit of $8.7 million during the third quarter. According to the reported number, this is down 80.6% from last year's figures. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Management Quote: Commenting on the Company's results, Tim Naughton, CEO and President, said, "We had a strong third quarter as evidenced by 20% FFO per share growth. Operating fundamentals remain favorable as same-store NOI growth topped 7% for the sixth consecutive quarter and recently completed development communities continued to exceed our expectations."
A Look Back: Net income has increased more than threefold year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 1095.4% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. At $5.46 per share, the average estimate for the fiscal year has fallen from $5.48 90 days ago.
by
Investopedia Staff
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