San Francisco-based Prologis, Inc. (PLD) operates in the logistics real estate. With a market cap of $104.9 billion, Prologis is the global leader in its space and focuses on high-barrier, high-growth markets. The company leases logistics facilities to a diverse customer base across B2B and retail/online fulfillment categories. The real estate giant is expected to release its fiscal Q2 earnings for 2024 before the market opens on Wednesday, July 17.
Ahead of the event, analysts expect Prologis to report a profit of $1.33 per share, down a massive 27.3% from $1.83 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates twice and met them on two other occasions in the last four quarters. Its EPS of $1.28 for the last reported quarter met the Wall Street estimates. Prologis reported a double-digit jump in rental revenue, leading to an increase in overall revenues in the previous quarter.
Looking ahead to fiscal 2024, analysts expect Prologis to report an EPS of $5.42, down 3.4% from $5.61 in fiscal 2023. And its fiscal 2025 EPS is expected to grow 12% year over year to $6.07.
PLD stock dipped 15% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 16.1% returns and the S&P 500 Real Estate Sector SPDR’s (XLRE) 4.7% decline during the same time frame.
The company has shown impressive resilience in the past months. Despite the changing market dynamics, geopolitical tensions, currency fluctuations, and high interest rates, it has reported increased revenues and profits. In Q1 2024, Prologis reported a 10.6% increase in overall revenues, with the rental segment leading the growth with an 11.9% increase in revenues. Despite underperforming the broader market on a YTD basis, it has performed well in the past month, gaining 5.5%, and gave a dividend of $0.96 in March and June which was 10.3% higher than the previous year’s quarterly dividends.
The consensus opinion on Prologis stock is bullish, with a “Strong Buy” rating overall. Out of 21 analysts covering the stock, 14 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and five advise a “Hold” rating. This configuration looks slightly less bullish than three months ago when there were 15 “Strong Buy” ratings.
The average target price for Prologis is $130.72, indicating a potential upside of 15.4% from the current price levels.
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