A Preview Of Alexandria Real Estate's Earnings

Alexandria Real Estate (NYSE:ARE) will release its quarterly earnings report on Monday, 2024-10-21. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Alexandria Real Estate to report an earnings per share (EPS) of $2.37.

Alexandria Real Estate bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

The company's EPS beat by $0.02 in the last quarter, leading to a 3.52% drop in the share price on the following day.

Here's a look at Alexandria Real Estate's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	2.34	2.32
EPS Actual	2.36	2.35	2.28	2.26
Price Change %	-4.0%	1.0%	-4.0%	1.0%

Stock Performance

Shares of Alexandria Real Estate were trading at $121.25 as of October 17. Over the last 52-week period, shares are up 29.0%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Alexandria Real Estate

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Alexandria Real Estate.

A total of 8 analyst ratings have been received for Alexandria Real Estate, with the consensus rating being Neutral. The average one-year price target stands at $128.88, suggesting a potential 6.29% upside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Ventas, Healthpeak Properties and Omega Healthcare Invts, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Ventas, with an average 1-year price target of $65.88, suggesting a potential 45.67% downside.
• As per analysts' assessments, Healthpeak Properties is favoring an Outperform trajectory, with an average 1-year price target of $24.29, suggesting a potential 79.97% downside.
• Omega Healthcare Invts received a Neutral consensus from analysts, with an average 1-year price target of $42.2, implying a potential 65.2% downside.

Summary of Peers Analysis

The peer analysis summary outlines pivotal metrics for Ventas, Healthpeak Properties and Omega Healthcare Invts, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Alexandria Real Estate	Neutral	7.40%	$549.48M	0.23%
Ventas	Outperform	8.55%	$519.18M	0.20%
Healthpeak Properties	Outperform	27.31%	$413.85M	1.65%
Omega Healthcare Invts	Neutral	1.02%	$249.00M	3.15%

Key Takeaway:

Alexandria Real Estate ranks in the middle for revenue growth among its peers. It is at the bottom for gross profit and return on equity.

About Alexandria Real Estate

Alexandria Real Estate Equities Inc is an urban office real estate investment trust (REIT). It is engaged in the business of providing space for lease to life science, agtech, and technology tenants. The company has established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, agtech, and technology campuses that provide tenants with highly dynamic and collaborative environments. Alexandria also provides strategic capital to transformative life science, agtech, and technology companies through venture capital platform.

Financial Insights: Alexandria Real Estate

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Alexandria Real Estate showcased positive performance, achieving a revenue growth rate of 7.4% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: Alexandria Real Estate's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.6% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Alexandria Real Estate's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.23%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Alexandria Real Estate's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.11%, the company showcases efficient use of assets and strong financial health.

Debt Management: Alexandria Real Estate's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.7.

To track all earnings releases for Alexandria Real Estate visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.