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Here's How VICI Properties (VICI) Is Placed Before Q3 Earnings

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VICI Properties Inc. (VICI - Free Report) is slated to report third-quarter 2022 results on Oct 27 after the bell. The company’s quarterly results are likely to display growth in both revenues and funds from operations (FFO) per share.

In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of market-leading gaming, hospitality and entertainment destinations, came up with an in-line performance in terms of FFO per share. Results reflected higher-than-anticipated revenues.

In the last four quarters, the company exceeded the Zacks Consensus Estimate on one occasion and met the same on the other three. It has a trailing four-quarter surprise of 0.58%, on average. This is depicted in the graph below:

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote

Let’s see how things have shaped up before this announcement.

Factors to Note

VICI Properties enjoys the ownership of three of the most iconic entertainment facilities on the Las Vegas Strip, namely Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.

The company has made concerted efforts to grow its portfolio and team up with the best-in-class tenants. Such efforts are likely to have aided VICI’s performance in the quarter under review.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $740.13 million, suggesting a year-over-year increase of 97.0%.

Income from sales-type leases is currently pegged at $615.4 million, indicating an increase from the prior quarter’s $375.2 million and the year-ago quarter’s $292.06 million.

Income from lease financing receivables and loans stands at $160.3 million, down sequentially from $261.72 million but up from the year-ago period’s $70.21 million.

Revenues from golf operations are estimated at $7.84 million, down from the prior quarter’s $10.17 million but up from the year-ago quarter’s $6.50 million.

Before the quarterly earnings release, there is a lack of any solid catalyst to become optimistic about the stock. The Zacks Consensus Estimate for the July-September quarter’s FFO per share has remained unchanged at 49 cents over the past month. However, the figure suggests 8.9% growth year over year.

Here Is What Our Quantitative Model Predicts:

Our proven model predicts a surprise in terms of FFO per share for VICI Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

VICI Properties currently carries a Zacks Rank #3 and has an Earnings ESP of +0.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a Look

Here are some other stocks from the REIT sector — Extra Space Storage Inc. (EXR - Free Report) , Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these also have the right combination of elements to report a surprise this quarter.

Extra Space Storage, scheduled to report third-quarter earnings on Nov 1, currently has an Earnings ESP of +1.31% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Public Storage, slated to release quarterly numbers on Nov 1, has an Earnings ESP of +1.34% and carries a Zacks Rank of 3 at present.

SBA Communications Corporation, scheduled to report quarterly numbers on Oct 31, currently has an Earnings ESP of +0.44% and carries a Zacks Rank of 3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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