Prologis Set to Reveal Q4 Earnings: A Look at Performance and Analysts’ Expectations
San Francisco, California-based Prologis, Inc. (PLD) stands as the world’s leading logistics real estate firm, concentrating on high-barrier and high-growth markets. With a market capitalization of $97.9 billion, Prologis leases modern logistics facilities to a varied clientele, particularly in business-to-business and retail/online fulfillment sectors. The company will announce its Q4 earnings prior to the market opening on Tuesday, January 21.
Analysts Predict Strong Core FFO Ahead of Earnings Call
Analysts forecast that Prologis will report core funds from operations (FFO) of $1.38 per share, a 9.5% increase from $1.26 per share in the same quarter last year. Notably, the company has either met or exceeded Wall Street’s bottom-line expectations in each of the last four quarters. Most recently, its core FFO of $1.43 per share for the last quarter surpassed projections by 4.4%.
Future Projections Show Mixed Results
For fiscal 2024, analysts anticipate a core FFO per share of $5.45, reflecting a 2.9% decline from $5.61 in fiscal 2023. However, a rebound is expected in fiscal 2025, with projections for a 6.4% increase in core FFO per share to $5.80.
Stock Performance Showcases Challenges
Over the past 52 weeks, PLD stock has decreased by 20.7%, falling behind the S&P 500 Index’s 23.3% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 1.5% increase during the same period.
Q3 Results Drive Market Enthusiasm
Following the release of its Q3 results on October 16, Prologis stock surged 4.6%, bolstered by impressive profitability growth. Total revenues increased by 6.3% year-over-year to surpass $2 billion, driven by a rise in rental and other revenues. Net earnings for shareholders jumped 34.6% year-over-year to $1 billion, largely due to higher gains from asset disposals. Notably, Prologis reported a remarkable 235.3% year-over-year increase in net gains from real estate dispositions, totaling $434.4 million.
Furthermore, its same-store property cash Net Operating Income (NOI) rose by 7.2% year-over-year to $1.3 billion. The company remains optimistic about its long-term demand drivers and is well-positioned as a preferred partner for leading global customers in supply chain, digital, and energy infrastructure needs.
Analysts Hold a Moderately Bullish Outlook
The consensus on PLD stock is moderately bullish, with an overall “Moderate Buy” rating. Among the 23 analysts covering the stock, 13 recommend “Strong Buy,” two suggest “Moderate Buy,” seven advise “Hold,” and one rates it as a “Strong Sell.” The average price target stands at $131.59, indicating a significant potential upside of 24.5% from current levels.
On the date of publication, Aditya Sarawgi 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 for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
