Saul Centers Reports Q4 FFO Shortfall and Future Outlook
Saul Centers (BFS) recently announced its quarterly funds from operations (FFO) at $0.63 per share, falling short of the Zacks Consensus Estimate of $0.68 per share. In comparison, the FFO stood at $0.79 per share the previous year, and these figures are adjusted for non-recurring items.
The reported FFO reflects an unexpected shortfall of -7.35%. Last quarter, analysts predicted an FFO of $0.80 per share, while the company reported $0.83, resulting in a positive surprise of 3.75%.
Across the last four quarters, Saul Centers has exceeded consensus FFO estimates three times.
Revenue Performance
Saul Centers operates in the Zacks REIT and Equity Trust – Retail industry. For the quarter ending December 2024, it reported revenues of $67.92 million, slightly below the Zacks Consensus Estimate by 1.47%. This figure shows an increase from the year-ago revenues of $66.68 million. The company has also surpassed consensus revenue estimates three times over the last year.
Market Reaction and Investor Sentiment
The immediate price movement of Sauls Centers stock following the report will largely depend on management’s insights during the earnings call about future FFO expectations. Since the start of the year, the stock has declined by approximately 5%, while the S&P 500 has experienced a minor decline of -0.3%.
Future Prospects for Saul Centers
Investors may wonder what lies ahead for Saul Centers. A key factor to monitor is the company’s FFO outlook. This includes current consensus FFO expectations for the upcoming quarters and any recent changes to those estimates. Historical data indicates a strong correlation exists between short-term stock movements and estimate revisions.
Investors can track these revisions or utilize tools like the Zacks Rank, which has a proven track record for leveraging estimate revisions effectively. Ahead of the latest earnings release, the trend for estimate revisions for Saul Centers is mixed. As a result, the stock currently holds a Zacks Rank #3 (Hold), suggesting it is anticipated to perform in line with the market.
It will be noteworthy to observe changes in estimates for the upcoming quarters and the current fiscal year. The consensus FFO estimate for the next quarter is $0.73, forecasting revenues of $69.76 million, while the projection for the entire fiscal year stands at $2.92 per share on revenues of $286.88 million.
Industry Outlook and Comparisons
Investors should consider the overall industry outlook, which can significantly affect Saul Centers’ stock performance. According to the Zacks Industry Rank, the REIT and Equity Trust – Retail sector is currently positioned in the top 28% of over 250 Zacks industries. Historically, sectors in the top 50% have outperformed those in the bottom 50% by more than two to one.
Another stock within the wider Zacks Finance sector, AG Mortgage Investment Trust (MITT), has yet to disclose its results for the quarter ending December 2024. Its earnings are expected to be released on March 3, with projected quarterly earnings of $0.19 per share reflecting a year-over-year change of +11.8%. The consensus earnings estimate has remained unchanged over the last 30 days, and revenues are anticipated to reach $18 million, up 34.9% from the previous year.
Investment Considerations for Saul Centers, Inc. (BFS)
Before making any investment decisions regarding Saul Centers, Inc. (BFS), investors may want to explore the top stock picks for the next month. Zacks Investment Research offers insights through its free report highlighting seven stocks recommended for purchase in this timeframe.
Since 1978, Zacks Investment Research has aimed to equip investors with independent research and helpful tools. Their Zacks Rank stock-rating system boasts an impressive history, reportedly outperforming the S&P 500 with an average annual gain of +24.08% (based on returns from January 1, 1988, through May 6, 2024).
For the latest recommendations from Zacks Investment Research, you can download the report detailing the 7 Best Stocks for the Next 30 Days.
Saul Centers, Inc. (BFS): Free Stock Analysis.
AG Mortgage Investment Trust, Inc. (MITT): Free Stock Analysis.
This article was originally published by Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
