Phillips Edison & Company, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Phillips Edison & Company reported quarterly adjusted earnings of 49 cents per share, beating the 18-cent analyst average and last year's 20 cents. Revenue rose 5.7% to $193.09 million, above the $191.74 million expected, and net income was $62.68 million.

Confirmed

Global impact / market context

Earnings far above analyst expectations suggest the shopping-center landlord is collecting more rent and controlling costs better than Wall Street assumed, which supports the cash available to pay dividends and could justify the stock's recent gains.

Analyst inference

Analysts rate the shares a buy, with a median 12-month price target of $43.00, about 10.8% above the $38.36 last close. The stock gained 2.7% this quarter and 7.8% this year, though three analysts cut estimates in the past 30 days.

Analyst inference

What to watch

1. Three analysts negatively revised earnings estimates in the last 30 days, while the mean estimate was unchanged over three months, so watch whether downgrades spread to more analysts. Confirmed
2. Watch whether Phillips Edison raises its dividend, since higher earnings and net income could support a larger payout, which means more cash returned to shareholders each quarter. Proposed
3. Watch whether revenue growth holds near 5.7%, because slower rent collection or higher property costs would pressure profit per sale and could weaken support for the $43.00 price goal. Analyst inference

Evidence

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