Public's Third Quarter Earnings Report

Public Storage (NYSE:PSA) announced its results for the third quarter on November 8, 2012. Public Storage is a real estate investment trust (REIT) with a focus on the acquisition, development, ownership, and operation of self-storage facilities.

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: Everything Investors Need To Know About Earnings

The Numbers: Public managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of $1.76 per share versus the $1.68 per share estimate and revenues of $412.6 million versus the $410.5 million estimate. Revenue climbed 4.8% from the same period last year. For the third quarter, the company reported net income of $296.6 million, up 34.7% from the year-ago quarter.



Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.76 a share to $1.77 over the last 90 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. The average estimate for the fiscal year is $6.20 per share, down from $6.31 90 days ago.