EPR Properties EPR is slated to report second-quarter 2015 results on Aug 4, after the closing bell.
This retail real estate investment trust (“REIT”) has beaten the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 3.62%. The Zacks Consensus Estimate for the second quarter is currently pegged at $1.06.
Is the company poised for a winning quarter? Let’s see how things are shaping up prior to this announcement.
Factors to Consider
EPR Properties is a specialty REIT that focuses on investments in properties across three primary market segments – Entertainment, Recreation and Education. We expect the company’s earnings to benefit from its solid underwriting and strong portfolio performance.
Importantly, there is strong demand for quality education and associated facilities that is exceeding supply, thereby benefiting the company’s investments and pipelines. The Entertainment and Recreation segments too promise good performance with solid demand for such properties amid an economic recovery and enhanced consumer confidence backed by job gains and improved wages. Yet, interest expenses are anticipated to remain elevated.
Earnings Whispers
Our proven model does not conclusively show that EPR Properties will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here as you will see below.
Zacks Rank: EPR Properties has a Zacks Rank #3 (Hold).
Zacks ESP: The earnings ESP for the company is 0.00%, which when combined with a Zacks Rank #3, makes a surprise prediction difficult.
Notably, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Other Stocks to Consider
Here are some stocks in the REIT industry that you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:
Ashford Hospitality Trust, Inc. AHT carries a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +4.35%. It is scheduled to report results on Aug 6.
CubeSmart CUBE has an Earnings ESP of +6.90% and a Zacks Rank #2 (Buy). The company is slated to release results on Aug 6.
Hudson Pacific Properties, Inc. HPP carries a Zacks Rank #3 and has an Earnings ESP of +2.44%. It is scheduled to report results on Aug 6.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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