Digital Realty Trust, Inc. (DLR), headquartered in Austin, Texas, brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. Valued at $50.2 billion by market cap, the company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants. The leading global data center REIT is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Thursday, Oct. 24.
Ahead of the event, analysts expect DLR to report a profit of $1.67 per share on a diluted basis, up 3.1% from $1.62 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect DLR to report FFO of $6.65, up marginally from $6.59 in fiscal 2023. Its FFO is expected to rise 6.5% year over year to $7.08 in fiscal 2025.
DLR stock has underperformed the S&P 500’s ($SPX) 32.9% gains over the past 52 weeks, with shares up 29.2% during this period. However, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 24.8% gains over the same time frame.
DLR experienced a rise in operating expenses and provision for impairment. Additionally, the company saw a decline in its year-end occupancy rate as challenges in the cloud market hindered growth. These factors raised concerns among investors about DLR's performance.
On Jul. 25, DLR shares closed down more than 2% after reporting its Q2 results. Its core funds from operations of $1.65 exceeded Wall Street estimates of $1.63, while the company’s revenue of $1.36 billion slightly fell short of Wall Street forecasts of 1.38 billion.
Analysts’ consensus opinion on DLR stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, nine give a “Hold” rating, and one recommends a “Strong Sell.” DLR’s average analyst price target is $161.09, indicating a marginal potential upside from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
