American Campus Communities
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American Campus Communities beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins shrank, operating margins were steady, net margins grew.
American Campus Communities reported revenue of $97.3 million. The seven analysts polled by S&P Capital IQ anticipated sales of $88.9 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $98.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.02. The five earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share on the same basis. GAAP EPS of $0.22 for Q3 were 10.0% higher than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.0%, 10 basis points worse than the prior-year quarter. Operating margin was 29.2%, about the same as the prior-year quarter. Net margin was 15.0%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $94.7 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $366.2 million. The average EPS estimate is $0.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 94 members out of 131 rating the stock outperform, and 37 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give American Campus Communities a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Campus Communities is outperform, with an average price target of $41.32.
Can your retirement portfolio provide you with enough income to last? You'll need more than American Campus Communities. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add American Campus Communities to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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.