Simon Property Group Poised for Earnings Report Amid Mixed Stock Performance
Simon Property Group, Inc. (SPG), located in Indianapolis, Indiana, boasts a market cap of $57.05 billion and specializes in premier shopping, dining, and entertainment venues. The company is set to release its Q3 earnings report following the market close on Tuesday, Nov. 5.
Analysts Anticipate Earnings Decline
As the earnings report approaches, analysts predict SPG will show a profit of $3.01 per share for the quarter, a 5.9% decrease from last year’s $3.20. The company has generally exceeded Wall Street’s earnings expectations in three of the last four quarters but faced challenges in one instance.
Recent Performance Metrics
In the last quarter, SPG reported adjusted earnings of $2.90 per share, slightly below the consensus estimate by 1%. Increased interest expenses contributed to a minor shortfall in funds from operations (FFO) per share during Q2.
Future Earnings Expectations
For fiscal 2024, analysts expect SPG to deliver EPS of $12.85, representing a 2.7% increase from $12.51 in fiscal 2023.
Stock Performance Overview
SPG’s stock has risen 22.2% year-to-date, which slightly underperforms the broader S&P 500 Index’s ($SPX) 22.5% gains. However, it has outpaced the Real Estate Select Sector SPDR Fund’s (XLRE) 10.9% increase during the same period.
Market Reactions and Analyst Ratings
Simon Property’s stock has shown a mixed trajectory. Despite falling short of Q2 funds from operations (FFO) estimates on August 5, the stock prices jumped 5.1% the following day, buoyed by stronger-than-expected revenue of $1.5 billion. Demand was driven by its portfolio of prestigious tenants and luxury retailers, alongside an upward revision of its annual FFO forecast.
The overall consensus on SPG stock is moderately positive, with a “Moderate Buy” rating. Among the 17 analysts covering the stock, six recommend a “Strong Buy,” while 11 suggest a “Hold.”
Price Target and Potential Growth
Currently, SPG trades at a premium relative to the average analyst price target of $167.35. Nevertheless, the highest target price of $200 implies potential upside of approximately 14.7%.
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On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information provided in this article is exclusively for informational purposes. For further details, please view the Barchart Disclosure Policy here.
The views expressed in this article reflect the author’s opinions and do not necessarily represent those of Nasdaq, Inc.
