EastGroup Properties Earnings Preview

After beating estimates last quarter by $0.02, EastGroup Properties (NYSE: EGP  ) has set the standard for itself. The company will unveil its latest earnings Thursday. EastGroup Properties focuses on the acquisition, development, and operation of industrial properties in major Sunbelt markets throughout the United States.

What analysts say

  • Buy, sell, or hold?: Analysts think investors should stand pat on EastGroup Properties with nine of 15 analysts rating it hold. Analysts don't like EastGroup Properties as much as competitor Monmouth R.E. overall. One out of one analysts rates Monmouth R.E. a buy compared to five of 15 for EastGroup Properties. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.72 per share. Estimates range from $0.71 to $0.73.

What our community says
The majority of CAPS All-Stars sees EGP as a good bet, with 62.5% awarding it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars as 70.5% give it an "outperform" rating. Fools are bullish on EastGroup Properties, though the message boards have been quiet lately with only 11 posts in the past 30 days. EastGroup Properties' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management
EastGroup Properties' income has fallen year over year by an average of 21.9%. Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Net Margin

11%

11.7%

9.3%

10.2%

One final thing: If you want to keep tabs on EastGroup Properties' movements, and for more analysis on the company, make sure you add it to your Watchlist.

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