) - a Pa.-based industrial real estate investment trust (REIT) -
is set to report second-quarter 2013 results on Jul 23, before
the opening bell. Our proven model does not conclusively show
that Liberty Property will beat the Zacks Consensus Estimate in
the upcoming quarter.
To beat the estimate, a stock needs to have both a positive
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3. However, that is not the case
here, as you will see below.
The earnings ESP for Liberty Property is 0.00% - indicating that
the difference between the Most Accurate Estimate and the Zacks
Consensus Estimate is nil. Both the estimates stand at 66
Zacks Rank #3 (Hold):
Liberty Property's Zacks Rank of 3, when combined with a 0.00%
ESP, makes surprise prediction difficult.
Stocks with Zacks Ranks of #1, 2 and 3 have a significantly
higher chance of beating earnings. We caution against stocks with
a Zacks Rank #4 and 5 (Sell rated stocks) which should not be
considered going into earnings announcement.
Factors to Consider
For Liberty Property, the strengthening of industrial markets
fundamentals is likely to help its occupancy level. Additionally,
the company's ongoing portfolio repositioning activity to focus
on markets having better job and rent growth prospects bodes well
for its overall growth.
Liberty Property, which reported a positive earnings surprise
of 3.17% in the first quarter, also made a strategic acquisition
in the recent past. The company bought a Wash.-based property
which boasts high-end tenants like The UPS Store of
United Parcel Service Inc.
) and M Street Store.
Nevertheless, Liberty Property generates significant revenues
from its office portfolio. The demand for offices is correlated
to job growth. Given the current economic environment and the
volatility in the job market, demand for Liberty Property's
office portfolio is likely to suffer. Also, the continuous
development activity of Liberty Property involves significant
upfront operating expenses, which remain a drag on the company's
Other Stocks to Consider
Here are some other REITs you may want to consider on the
basis of our model, which shows that they have the right
combination of elements to post an earnings beat this
) has Earnings ESP of +7.41% and a Zacks Rank #3. The company is
scheduled to report earnings on Jul 31, after the market
The Macerich Company
) has Earnings ESP of +1.24% and a Zacks Rank #2 (Buy). The
company is scheduled to report earnings on Aug 5, after the
FFO (Funds from operations), a widely used metric to gauge
the performance of REITs, is obtained after adding depreciation
and amortization and other non-cash expenses to net income.
DDR CORP (DDR): Free Stock Analysis Report
LIBERTY PPTY TR (LRY): Free Stock Analysis
MACERICH CO (MAC): Free Stock Analysis Report
UTD PARCEL SRVC (UPS): Free Stock Analysis
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