Q4 Earnings Preview for SL Green Realty (SLG)

in EARNINGS/INVESTING IDEAS by

SL Green Realty Corp. (NYSE:SLG) is scheduled to report Q4 earnings results after markets close for trading on January 22, 2020. The earnings conference call is scheduled for the afternoon of January 23, 2020, at 2:00 PM EST.

The company is expected to report revenue of $246.8 million.

The revenue forecast of $246.8 million based on a poll of 7 analysts implies a year-over-year (YoY) decline of -0.3%. Last year the company reported $247.5 million in revenue for the quarter.

Expected to report EPS of -/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $246.81 $247.52 -0.3%
EPS N/A -$2.21 NM

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 6 tracked quarters, and missed expectations 4 quarters.

What are your expectations from SL Green Realty for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.37 $0.31 -15.4% Missed
Q4, 2018 $0.33 -$2.21 NM Missed
Q3, 2018 $0.36 $0.27 -25.8% Missed
Q2, 2018 $0.38 $0.40 5.6% Beat
Q1, 2018 $0.46 $0.55 19.8% Beat
Q4, 2017 $0.41 $0.30 -26.8% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-16 $81.76 $80.97 -1.0% Decline
2019-07-17 $81.82 $83.38 1.9% Increase
2019-04-17 $87.27 $87.05 -0.3% Decline
2019-01-23 $88.34 $86.35 -2.3% Decline

Fundamentals And Technical Analysis

SL Green Realty is currently trading at $92.18/share, up 1.0% for the day. The company is trading at approximately 98.2% of its 52-week high of $93.91/share. The company’s stock price is up 13.8% since the last earnings report and up 1.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 60.26 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:SLG Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 35.0x and a forward P/E multiple of 32.8x.

SL Green Realty’s current share price also implies a price-to-book (P/B) multiple of 1.3x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $92.18
P/E Ratio 35.0x
P/E Ratio (Fwd) 32.8x
PEG Ratio -0.8
Total Debt to Capital (%) 43.2%
Levered Free Cash Flow $423.4 million
Enterprise Value / EBITDA 21.7x

Source: Finbox

Company Profile: SL Green Realty Corp.

SL Green Realty Corp. is a mid-cap stock with a market capitalization of $7.309 billion and a total enterprise value of $14.468 billion. The company operates in the Real Estate sector and the Equity Real Estate Investment Trusts (REITs) industry.

SL Green Realty Corp., an S&P 500 company and New York City’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties.

As of September 30, 2019, SL Green held interests in 93 Manhattan buildings totaling 45.0 million square feet. This included ownership interests in 27.2 million square feet of Manhattan buildings and 17.8 million square feet securing debt and preferred equity investments.

In addition, SL Green held ownership interests in 7 suburban properties comprised of 15 buildings totaling 2.3 million square feet in Brooklyn, Westchester County, and Connecticut.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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