UMH Properties Reports Steady Q3 Earnings Amid Market Gains
Quarterly Performance Meets Expectations
UMH Properties (UMH) announced quarterly funds from operations (FFO) of $0.24 per share, matching the Zacks Consensus Estimate. This figure shows improvement compared to the $0.22 FFO reported a year earlier. It’s important to note that these results are adjusted for non-recurring items.
A quarter ago, projections suggested UMH would generate an FFO of $0.22 per share, but the company exceeded expectations with an actual FFO of $0.23, providing a surprise of 4.55%.
Over the past year, UMH has exceeded consensus FFO estimates two out of four times.
Revenue Misses but Shows Growth
Operating in the Zacks REIT and Equity Trust – Residential industry, UMH reported revenues of $60.67 million for the quarter ending September 2024. Unfortunately, this fell short of the Zacks Consensus Estimate by 1.46%. In comparison, the revenues for the same quarter last year were $56.04 million. Notably, the company managed to exceed consensus revenue estimates three times in the last four quarters.
The stock’s immediate price movement will likely hinge on company management’s insights during the upcoming earnings call, especially regarding future FFO expectations.
Since the start of the year, UMH shares have increased approximately 21.9%, while the S&P 500 gained around 21.2% in the same period.
Looking Ahead: What’s Next for UMH?
Despite a strong year thus far, investors are left wondering: what lies ahead for UMH stock?
Determining future performance involves considering the company’s FFO outlook. This outlook encompasses current consensus expectations for upcoming quarters and any recent changes to these estimates.
Research indicates a strong link between short-term stock movements and trends in estimate revisions. Investors can track these revisions themselves or utilize a resource like the Zacks Rank, which has a proven history of leveraging estimate revisions effectively.
Before this earnings release, the trend of estimate revisions for UMH has been unfavorable. While these revisions may shift following the earnings report, the current standing assigns a Zacks Rank #4 (Sell) to the stock, suggesting that shares may underperform the market in the near term.
It will be interesting to see how estimates for the next quarters and the current fiscal year shift in the coming days. Currently, the consensus FFO estimate is $0.24 with expected revenues of $61.65 million for the upcoming quarter, and $0.93 FFO on projected revenues of $241.23 million for the fiscal year.
Investors should also consider the broader industry outlook, as it can significantly influence stock performance. The Zacks Industry Rank shows that the REIT and Equity Trust – Residential category is within the top 40% among over 250 Zacks industries. Historically, the top 50% of Zacks-ranked industries have outperformed the bottom 50% by more than a two-to-one margin.
Upcoming Earnings in the Sector
In related news, Stronghold Digital Mining, Inc. (SDIG) has yet to release its results for the quarter ending September 2024, with results expected on November 13. Analysts forecast a quarterly loss of $0.62 per share for this company, reflecting a staggering year-over-year change of -1140%. The consensus estimate for SDIG’s revenues stands at $16.15 million, which represents an 8.9% decrease from the previous year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
