Advertisement
UK markets closed

  • NIKKEI 225

    37,552.16
    +113.55 (+0.30%)
     

  • HANG SENG

    16,828.93
    +317.24 (+1.92%)
     

  • CRUDE OIL

    83.40
    +1.50 (+1.83%)
     

  • GOLD FUTURES

    2,335.70
    -10.70 (-0.46%)
     

  • DOW

    38,503.69
    +263.71 (+0.69%)
     

  • Bitcoin GBP

    53,259.00
    -198.11 (-0.37%)
     

  • CMC Crypto 200

    1,426.91
    +12.15 (+0.86%)
     

  • NASDAQ Composite

    15,696.64
    +245.33 (+1.59%)
     

  • UK FTSE All Share

    4,378.75
    +16.15 (+0.37%)
     
Money:

What is the true cost of the UK state pension?

To get a sense of the true value of the state pension, you can look at how much you would need to save to match it yourself

Can Macerich (MAC) Maintain its Beat Streak in Q3 Earnings?

Zacks Equity Research
Updated

The Macerich Company MAC — a retail real estate investment trust (REIT) — is scheduled to report third-quarter 2017 results on Oct 30, after the market closes. While its funds from operations (FFO) per share are anticipated to be up year over year, revenues might record a decline.

Last quarter, the company reported FFO per share of 98 cents, beating the Zacks Consensus Estimate by 4.3%.

Over the trailing four quarters, Macerich beat estimates in three occasions and posted in-line results in the other, generating an average positive beat of 2.17%.

Macerich Company (The) Price and EPS Surprise
 

Macerich Company (The) Price and EPS Surprise | Macerich Company (The) Quote

However, the stock has lost 20% year to date, underperforming the 6.3% loss incurred by the industry it belongs to.

ADVERTISEMENT




Note: All EPS numbers presented in this write-up represent funds from operations (FFO) per share.

Factors That Might Influence Q3 Results

Macerich enjoys a portfolio of premium malls in vibrant U.S. markets. The presence of a number of well-capitalized retailers on its roster has enabled the company to maintain a stable source of rent for the past few quarters. Additionally, Macerich’s omni-channel distribution model, steadily rising demand, along with its tempered supply and aggressive capital-recycling program, augur well for growth.

However, rising consumer purchases through the Internet has emerged as a pressing concern for this retail REIT. These have made retailers reconsider their footprint and eventually opt for store closures. Also, retailers not able to cope with competition have been filing bankruptcies.

Subsequently, the company’s revenues from minimum rent will likely experience a marginal fall as compared to the prior quarter. The company realizes minimum rents on a straight-line basis. The Zacks Consensus Estimate for third-quarter minimum rental revenues is currently pegged at $151 million. This indicates a 1.3% decline on a year-over-year basis.  

Percentage rents, which is realized when tenants' sales targets have been met, is also anticipated to witness a steep year-over-year decline due to the tepid retail environment. The Zacks Consensus Estimate of $2.57 million reflects a 33.6% plunge as compared to the prior-year quarter.   

Macerich’s activities during the quarter were inadequate to gain analysts’ confidence. Consequently, the Zacks Consensus Estimate for Q3 FFO remained unchanged at 98 cents over the past month.

Earnings Whispers

Our proven model does not conclusively show that Macerich will likely beat estimates this season. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. However, that is not the case here as you will see below.

(You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.)

Zacks ESP: The Earnings ESP for Macerich is 0.00%.

Zacks Rank: Macerich has a Zacks Rank #3. This increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.

Stocks That Warrant a Look

Here are a few stocks in the REIT sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:

CoreSite Realty Corporation COR, slated to release third-quarter results on Oct 26, has an Earnings ESP of +1.01% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ventas, Inc. VTR, scheduled to report quarterly numbers on Oct 27, has an Earnings ESP of +0.12% and a Zacks Rank of 3.

Boston Properties, Inc. BXP, slated to release third-quarter earnings on Nov 1, has an Earnings ESP of +0.39% and a Zacks Rank of 3.
 
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.

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Macerich Company (The) (MAC) : Free Stock Analysis Report
 
Ventas, Inc. (VTR) : Free Stock Analysis Report
 
Boston Properties, Inc. (BXP) : Free Stock Analysis Report
 
CoreSite Realty Corporation (COR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research