Earnings Outlook For Alexandria Real Estate

Alexandria Real Estate (NYSE:ARE) is set to give its latest quarterly earnings report on Monday, 2024-10-21. Here's what investors need to know before the announcement.

Analysts estimate that Alexandria Real Estate will 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).

Performance in Previous Earnings

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%

Tracking Alexandria Real Estate's 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 29.01%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts 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.

The consensus rating for Alexandria Real Estate is Neutral, based on 8 analyst ratings. With an average one-year price target of $128.88, there's a potential 6.29% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Ventas, Healthpeak Properties and Omega Healthcare Invts, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, Ventas is favoring an Outperform trajectory, with an average 1-year price target of $65.88, suggesting a potential 45.67% downside.
• The consensus outlook from analysts is an Outperform trajectory for Healthpeak Properties, with an average 1-year price target of $24.29, indicating a potential 79.97% downside.
• For Omega Healthcare Invts, analysts project an Neutral trajectory, with an average 1-year price target of $42.2, indicating 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.

All You Need to Know 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 Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Alexandria Real Estate's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.4% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: Alexandria Real Estate's net margin excels beyond industry benchmarks, reaching 5.6%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Alexandria Real Estate's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.23%, the company may encounter challenges in delivering satisfactory 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 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.