Federal Realty's Q3 2024 Earnings: What to Expect

Barchart · 10/17 05:49

Federal Realty Investment Trust (FRT), headquartered in North Bethesda, Maryland, is a self-administered real estate investment trust (REIT). Valued at $9.4 billion by market cap, the company specializes in the ownership, management, development, and redevelopment of prime community and neighborhood shopping centers. The shopping center-focused retail REIT is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Oct. 30.

Ahead of the event, analysts expect FRT to report a profit of $1.72 per share on a diluted basis, up 4.2% from $1.65 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.

For the full year, analysts expect FRT to report FFO of $6.81, up 4% from $6.55 in fiscal 2023. Its FFO is expected to rise 5% year over year to $7.15 in fiscal 2025.

FRT stock has underperformed the S&P 500’s ($SPX) 33.6% gains over the past 52 weeks, with shares up 26.7% during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 28.9% gains over the same time frame.

FRT has underperformed due to economic uncertainty and shifting consumer preferences impacting leasing activity and foot traffic in retail properties. The rise in e-commerce adoption and job market choppiness are raising concerns and could lead to a shift from brick-and-mortar stores to online shopping. Macroeconomic uncertainty and potential tenant bankruptcies may limit consumer spending and hurt the company's profitability and occupancy.

On Aug. 1, FRT shares closed up more than 1% after reporting its Q2 results. Its FFO of $1.69 exceeded Wall Street expectations of $1.68. The company’s revenue was $296.1 million, surpassing Wall Street forecasts of $292.9 million. FRT expects full-year FFO to be between $6.70 and $6.88.

Analysts’ consensus opinion on FRT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and five give a “Hold.” FRT’s average analyst price target is $122.97, indicating a potential upside of 8.3% from the current levels.

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.