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Macerich (MAC) Down 6.3% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for The Macerich Company (MAC - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Macerich came up with first-quarter 2017 FFO per share of $0.87, surpassing the Zacks Consensus Estimate of $0.84. The prior-year quarter’s FFO per share figure was also $0.87. Amid challenging retail landscape, the quarter witnessed modest improvement in same-center NOI.
The company posted revenues of $247 million for the quarter, surpassing the Zacks Consensus Estimate $229.9 million. However, it came in 3.5% lower than the prior-year quarter figure.
Quarter in Detail
As of Mar 31, 2017, mall portfolio occupancy contracted 80 basis points (bps) year over year to 95.1%. Mall tenant annual sales increased to $639 per square foot from $625 at the end of first-quarter 2016. Re-leasing spreads rose 17.5% on a year-over-year basis. Also, same-centers net operating income grew around 2.2% from the prior-year comparable period.
As of Mar 31, 2017, Macerich’s cash and cash equivalents were $92.3 million, down from $94 million as of Dec 31, 2016.
Portfolio Activity
In January, Macerich sold two non-core assets, Northgate Mall and Cascade Mall, for $170 million.
In March, the company sold an office building at Country Club Plaza. The share of the company in the sale proceeds was $39 million.
2017 Guidance
Macerich has reaffirmed its guidance for 2017. The retail REIT expects FFO per share in the range of $3.90–$4.00 for the year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter.
At this time, Macerich's stock has a subpar score of 'D' on both growth and momentum front. Following an exact same course, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Macerich (MAC) Down 6.3% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for The Macerich Company (MAC - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Macerich Q1 FFO & Revenues Beat Estimates, View Intact
Macerich came up with first-quarter 2017 FFO per share of $0.87, surpassing the Zacks Consensus Estimate of $0.84. The prior-year quarter’s FFO per share figure was also $0.87. Amid challenging retail landscape, the quarter witnessed modest improvement in same-center NOI.
The company posted revenues of $247 million for the quarter, surpassing the Zacks Consensus Estimate $229.9 million. However, it came in 3.5% lower than the prior-year quarter figure.
Quarter in Detail
As of Mar 31, 2017, mall portfolio occupancy contracted 80 basis points (bps) year over year to 95.1%. Mall tenant annual sales increased to $639 per square foot from $625 at the end of first-quarter 2016. Re-leasing spreads rose 17.5% on a year-over-year basis. Also, same-centers net operating income grew around 2.2% from the prior-year comparable period.
As of Mar 31, 2017, Macerich’s cash and cash equivalents were $92.3 million, down from $94 million as of Dec 31, 2016.
Portfolio Activity
In January, Macerich sold two non-core assets, Northgate Mall and Cascade Mall, for $170 million.
In March, the company sold an office building at Country Club Plaza. The share of the company in the sale proceeds was $39 million.
2017 Guidance
Macerich has reaffirmed its guidance for 2017. The retail REIT expects FFO per share in the range of $3.90–$4.00 for the year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter.
The Macerich Company Price and Consensus
The Macerich Company Price and Consensus | Macerich Company (The) Quote
VGM Scores
At this time, Macerich's stock has a subpar score of 'D' on both growth and momentum front. Following an exact same course, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.