This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Vornado to Benefit From Lower Vacancies

BOSTON ( TheStreet Ratings) -- Vornado Realty Trust (VNO - Get Report) is scheduled to report quarterly earnings after the market close on Monday, and analysts expect that improved vacancy rates will boost the company's bottom line .

Analysts are expecting Vornado to report second-quarter funds from operations (FFO) of $1.16 a share, compared with $1.11 in the year-ago quarter. Revenue is estimated to decrease to $683.6 million from $696.1 million a year ago, according to a poll of analysts by Thomson Reuters. The company should continue to benefit from improvements in vacancy rates throughout its portfolio of shopping centers and malls.

The following is taken from a first-quarter report published by TheStreet Ratings, an independent-research unit of TheStreet that uses a quantitative model to evaluate stocks.

Vornado improved earnings per share by 28% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, Vornado increased its bottom line by earning $3.35 versus 9 cents in the prior year.

We rate Vornado a buy. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Our model has a price target of $117 on shares of Vornado, offering the potential for 24% upside from current levels.

The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Vornado's gross profit margin is 42.60%, which we consider to be strong. Regardless of VNO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VNO's net profit margin of 45.80% significantly outperformed against the industry.

>>For upcoming earnings and estimates, see our Earnings Calendar.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
VNO $95.64 -0.62%
AAPL $111.73 0.12%
FB $94.12 -0.15%
GOOG $652.26 0.86%
TSLA $219.26 1.70%


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs