STAG Industrial, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

STAG Industrial reported quarterly adjusted earnings of 37 cents per share, up from 26 cents a year earlier and above the 28-cent analyst average. Revenue rose 10% to $230.97 million, topping the $227.63 million analysts expected. Net income was $70.67 million.

Confirmed

Global impact / market context

Higher earnings and revenue than analysts expected suggest STAG is collecting more rent and managing costs well, which supports the cash available to pay dividends. That is important because real estate investment trusts typically return much of their profit to shareholders as dividends.

Analyst inference

Analysts rate the shares a buy on average, and the median 12-month price target of $42.00 sits 13.9% above the last close of $36.18. The stock rose 1.4% this quarter but lost 1.3% so far this year, showing mixed recent performance.

Analyst inference

What to watch

1. Analyst earnings estimates fell about 0.3% over the last three months, while no estimate revisions occurred in the last 30 days, which means expectations have been roughly steady recently. Confirmed
2. Watch whether the average analyst rating of buy holds, with 5 strong buy or buy ratings, 6 hold ratings and 1 sell or strong sell rating, since rating changes could shift investor positioning. Proposed
3. Track whether STAG's revenue growth of 10% continues, because slower rent growth would reduce cash available for dividends and could pressure the shares toward the low end of analysts' earnings range. Analyst inference

Evidence

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