Alexander & Baldwin (ALEX) Earnings Preview: What to Expect on October 24th
Investors are gearing up for Alexander & Baldwin’s (ALEX) upcoming earnings report, scheduled for release on Thursday, October 24th. The announcement is eagerly anticipated, with investors keen to see if the company can surpass analyst expectations and provide optimistic guidance for the next quarter.
Analyst Expectations and Key Metrics
Analysts are projecting that Alexander & Baldwin will report an earnings per share (EPS) of $0.21 for the quarter. Guidance, particularly regarding future performance, is a key focus for investors, as it can significantly impact stock price movements.
Looking Back at Past Performance
In the previous earnings release, Alexander & Baldwin exceeded EPS estimates by $0.02, leading to a 6.32% surge in the share price the following trading day. Here’s a quick look at the company’s past performance and resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | 0.14 | 0.16 | 6.0% |
| Q1 2024 | 0.13 | 0.28 | 2.0% |
| Q4 2023 | 0.27 | 0.12 | -3.0% |
| Q3 2023 | 0.32 | 0.16 | 3.0% |
Stock Performance and Analyst Sentiment
As of October 22nd, shares of Alexander & Baldwin were trading at $18.3. Over the past 52 weeks, the stock has seen a 13.97% increase, indicating potential bullish sentiment among long-term investors going into this earnings release.
Analyst sentiment towards Alexander & Baldwin is positive, with a consensus rating of Buy based on 2 analyst ratings. The average one-year price target is $22.0, suggesting a potential 20.22% upside for the stock.
Peer Comparison: A Look at Industry Trends
To gain further insights into Alexander & Baldwin’s market positioning, let’s compare its performance with other prominent players in the real estate sector: American Assets Trust, Armada Hoffler Properties, and Empire State Realty Trust.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside (%) |
|—|—|—|—|
| American Assets Trust | Neutral | $26.0 | 42.08% |
| Armada Hoffler Properties | Buy | $12.5 | 31.69% |
| Empire State Realty Trust | Underperform | $10.0 | 45.36% |
Key Financial Metrics: A Deep Dive
Market Capitalization:
Alexander & Baldwin’s market capitalization is positioned below industry averages, suggesting a smaller scale compared to its peers. This could be attributed to factors such as growth expectations or operational capacity.Revenue Growth:
Over the past three months, Alexander & Baldwin has experienced a decline of approximately -3.9% in revenue. This indicates a decrease in top-line earnings and falls below the average revenue growth rate among its peers.Profitability:
Despite the revenue challenges, Alexander & Baldwin’s profitability metrics are strong. The company boasts a net margin of 17.83%, which exceeds industry benchmarks, demonstrating efficient cost management and strong financial health.Return on Equity (ROE) and Return on Assets (ROA):
Alexander & Baldwin’s ROE of 0.91% and ROA of 0.56% are both well above industry averages, signifying robust financial management and efficient use of shareholder equity capital and assets.Debt Management:
With a debt-to-equity ratio of 0.47, Alexander & Baldwin’s financial structure appears sound, as it is below industry norms.Understanding Alexander & Baldwin’s Business
Alexander & Baldwin Inc. operates within the real estate sector, primarily focusing on two segments: Commercial Real Estate and Land Operations. The Commercial Real Estate segment encompasses ownership and management of retail, industrial spaces, and urban ground leases, predominantly in Hawaii, and contributes significantly to the company’s revenue. The Land Operations segment actively manages land and real estate-related assets, maximizing their utilization. Geographically, the company operates across the United States.
Key Takeaways
While Alexander & Baldwin faces revenue growth challenges, its profitability and financial management remain strong. Investors will be watching closely for signs of improvement in revenue and optimistic guidance for the upcoming quarter. The company’s solid financial position and positive analyst sentiment suggest potential for future growth. To stay up-to-date on all Alexander & Baldwin earnings releases, visit their earnings calendar on our website.
