NEW YORK (TheStreet) -- Shares of DCT Industrial Trust (DCT - Get Report) rose 3.11% to $7.62 on Friday after the real estate investment trust announced fourth-quarter revenue that surpassed analysts' expectations.
The company reported revenue of $77.12 million, up from $64.28 million a year earlier2. This surpassed analysts' expectations of $74.89 million. DCT also posted adjusted funds from operations of $38 million, or 11 cents a share, compared to $33 million, or 11 cents a share, in the same period a year earlier. This fell in line with expectations of 11 cents a share, according to analysts polled by Thomson Reuters.
DCT expects FFO in the range of 45 to 48 cents for the full year, while analysts expect 47 cents a share.
"DCT had an excellent fourth quarter - a strong finish to a very successful and productive year. We made progress on all operating fronts, exceeded our capital deployment goals and improved the quality and focus of our portfolio," said CEO Phil Hawkins in the company's statement. "We also made tremendous progress to further strengthen our balance sheet, as we obtained investment grade bond ratings and successfully completed our debut bond offering in October."
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The stock had a volume of 12,566,018 on Friday, compared to its average of 4,597,640. It hit a high of $7.70 and a low of $7.51 for the day; it also has a one-year high of $8.45 and a one-year low of $6.62.
TheStreet Ratings team rates DCT INDUSTRIAL TRUST INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DCT INDUSTRIAL TRUST INC (DCT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DCT's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 19.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- DCT INDUSTRIAL TRUST INC reported significant earnings per share improvement 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. We feel that this trend should continue. During the past fiscal year, DCT INDUSTRIAL TRUST INC continued to lose money by earning -$0.09 versus -$0.13 in the prior year. This year, the market expects an improvement in earnings ($0.00 versus -$0.09).
- Net operating cash flow has increased to $42.00 million or 44.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.44%.
- In its most recent trading session, DCT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, DCT INDUSTRIAL TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: DCT Ratings Report