NEW YORK (TheStreet) -- Shares of Equity Residential (EQR) - Get Report are tumbling 4.76% to $66.50 on heavy trading volume Wednesday afternoon after the company cut its revenue outlook for a third time this year.
After yesterday's market close, the Chicago-based apartment landlord said it now expects revenue growth from properties open at least a year to range between 3.5% and 4% this year.
The real estate investment trust previously cut its upper limit to 5% in April before again lowering it to 4.5% in June.
Mizuho downgraded the stock to "underperform" from "neutral" following the results, Bloomberg reports.
"This one is very surprising to us, from what we view to be a top-tier organization with the sophisticated infrastructure that usually communicates future performance within a relatively visible band," the firm wrote in a note.
In all, Equity Residential reported second-quarter earnings of 59 cents per share, beating analysts' estimates of 42 cents per share. Normalized funds from operations came in at 76 cents per share, falling short of analysts' estimates of 78 cents per share.
About 4.92 million shares of Equity Residential have been traded so far today vs. its average trading volume of roughly 2.21 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Equity Residential's strengths such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: EQR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.