red toy house placed on table with pile of coins

Douglas Emmett (NYSE:DEI) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Douglas Emmett, Inc. (NYSE:DEI) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $0.01/share on revenue of $213.8 million. The consensus earnings per share (EPS) of $0.01/share is based on a poll of 4 analysts and represents a decline in eps of −88.5% over the same quarter last year, when the company reported earnings of $0.13/share.

The revenue forecast of $213.8 million based on a poll of 4 analysts implies a year-over-year (YoY) decline in revenue of −10.2%. Last year the company reported $238.1 million in revenue for the quarter.

Expected to report EPS contraction of −88.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $213.83 $238.07 −10.2%
EPS $0.01 $0.13 −88.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.

What are your expectations from Douglas Emmett, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.11 $0.01 −90.8% Missed
Q1, 2020 $0.05 $0.15 220.5% Beat
Q4, 2019 $0.15 -$0.17 −215.3% Missed
Q3, 2019 $0.15 $0.13 −16.1% Missed
Q2, 2019 $0.17 $0.20 17.6% Beat
Q1, 2019 $0.12 $0.17 38.5% Beat
Q4, 2018 $0.18 $0.15 −18.1% Missed
Q3, 2018 $0.18 $0.18 0.9% Beat

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 June 30, 2020, 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
August 6, 2020 $28.70 $28.94 0.8% Increase
May 7, 2020 $27.75 $29.52 6.4% Increase
February 11, 2020 $43.50 $43.80 0.7% Increase
November 5, 2019 $43.74 $43.22 −1.2% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.79, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.79 implies a 0.3% chance of earnings manipulation.

Fundamentals And Technical Analysis

Douglas Emmett, Inc. is currently trading at $24.66/share, down −2.1% for the day. The company is trading at approximately 54.1% of its 52-week high of $45.59/share. The company’s stock price is down −14.8% since the last earnings report and up 0.7% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 41.58 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:DEI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 13.17 and a forward P/E multiple of 140.03.

Douglas Emmett, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.03. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $24.66
P/E Ratio 13.2x
P/E Ratio (Fwd) 140.0x
PEG Ratio 0.1
Total Debt / Total Capital 42.4%
Levered Free Cash Flow $478.2 million
EV / EBITDA 18.1x

Finbox

Douglas Emmett, Inc. is a mid-cap stock with a market capitalization of $4.325 billion and a total enterprise value of $10.648 billion. The company operates in the Real Estate sector and the Equity Real Estate Investment Trusts (REITs) industry.

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.