ELS’s Q4 Earnings, Not Sales, Sway ‘The Fool’

January 25, 2012 by   - () Comments Off on ELS’s Q4 Earnings, Not Sales, Sway ‘The Fool’

The Motley Fool appraises ELS performance

Here’s what “The Motley Fool” had to say about the latest financial report released by Equity LifeStyle Properties (ELS), a leader in the ownership and management of RV parks and manufacturing housing communities.

Equity LifeStyle Properties reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway

For the quarter ended Dec. 31 (Q4), Equity LifeStyle Properties beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and earnings per share shrank to zero.

Gross margins grew, operating margins dropped and net margins contracted.

Revenue details

Equity LifeStyle Properties logged revenue of $159 million. The four analysts polled by S&P Capital IQ expected a top line of $143 million. Sales were 33% higher than the prior-year quarter’s $121 million.

EPS details

EPS came in at $0. The three earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS were $0 for Q4 versus $0.21 per share for the prior-year quarter.

Margin details

For the quarter, gross margin was 53.4%, 360 basis points better than the prior-year quarter. Operating margin was 21.5%, 730 basis points worse than the prior-year quarter. Net margin was -0.1%, 490 basis points worse than the prior-year quarter.

Looking ahead

Next quarter’s average estimate for revenue is $153 million. On the bottom line, the average EPS estimate is $0.51.

Next year’s average estimate for revenue is $606 million. The average EPS estimate is $1.42.

Investor sentiment

The stock has a one-star rating (out of five) at Motley Fool CAPS, with 23 members out of 95 rating the stock outperform, and 72 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Equity LifeStyle Properties a green thumbs-up, and 32 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Equity LifeStyle Properties is outperform, with an average price target of $70.40.

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