NEW YORK (TheStreet) -- Shares of Prologis (PLD) - Get Prologis, Inc. Report touched a 52-week high of $45.77 in afternoon trading Monday ahead of the real estate investment trust's fourth-quarter and full-year earnings report on Tuesday before the market open.
The consensus estimate calls for Prologis to post earnings of 48 cents a share. In the fourth quarter last year, the company reported EPS of 43 cents, which edged the consensus estimate of 42 cents, according to analysts polled by Thomson Reuters. Revenue totaled $379.21 million, which came up short of analysts' expectations of $387.18 million.
In the third quarter of 2014, Prologis reported EPS of 48 cents, which beat the consensus estimate of 46 cents. Revenue totaled $355.82 million, which came up well short of analysts' expectations of $388.35 million.
Exclusive Report:Jim Cramer’s Best Stocks for 2015
Separately, TheStreet Ratings team rates PROLOGIS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROLOGIS INC (PLD) a BUY. This is driven by several positive factors, 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 impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PROLOGIS 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, PROLOGIS INC turned its bottom line around by earning $0.42 versus -$0.34 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus $0.42).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 2654.4% when compared to the same quarter one year prior, rising from -$5.40 million to $137.92 million.
- Net operating cash flow has increased to $144.92 million or 12.62% when compared to the same quarter last year. In addition, PROLOGIS INC has also modestly surpassed the industry average cash flow growth rate of 5.30%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- PLD, with its decline in revenue, underperformed when compared the industry average of 13.5%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: PLD Ratings Report