Franklin Street Properties Beats Estimates on Top and Bottom Lines

Franklin Street Properties (AMEX: FSP  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Franklin Street Properties beat expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue increased and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Franklin Street Properties logged revenue of $38.1 million. The three analysts polled by S&P Capital IQ looked for revenue of $35.6 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $29.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The one earnings estimate compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS of $0.06 for Q4 were 14% lower than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.0%, 60 basis points worse than the prior-year quarter. Operating margin was 17.2%, 440 basis points worse than the prior-year quarter. Net margin was 16.2%, 390 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $34.8 million.

Next year's average estimate for revenue is $149.8 million.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 48 members out of 61 rating the stock outperform, and 13 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Franklin Street Properties a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Franklin Street Properties is underperform, with an average price target of $11.50.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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10/23/2014 2:21 PM
FSP $11.80 Up +0.06 +0.51%
Franklin Street Pr… CAPS Rating: **

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