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Q3 Earnings Preview for Public Storage (NYSE:PSA)

in EARNINGS/INVESTING IDEAS by

Public Storage (NYSE:PSA) is scheduled to report Q3 earnings results on November 4, 2020.

The company is expected to report earnings of $1.73/share on revenue of $728.8 million. The consensus earnings per share (EPS) of $1.73/share is based on a poll of 6 analysts and represents a decline in eps of −10.4% over the same quarter last year, when the company reported earnings of $1.93/share.

The revenue forecast of $728.8 million based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −0.1%. Last year the company reported $729.3 million in revenue for the quarter.

Expected to report EPS contraction of −10.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $728.78 $729.34 −0.1%
EPS $1.73 $1.93 −10.4%

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 Public Storage for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.64 $1.41 −14.1% Missed
Q1, 2020 $1.70 $1.79 5.5% Beat
Q4, 2019 $2.01 $1.87 −7.0% Missed
Q3, 2019 $1.91 $1.93 1.3% Beat
Q2, 2019 $1.82 $1.76 −3.4% Missed
Q1, 2019 $1.71 $1.73 0.9% Beat
Q4, 2018 $2.11 $2.17 2.8% Beat
Q3, 2018 $1.85 $1.85 0.0% 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 June 30, 2020, the stock price reacted by falling −2.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $201.38 $196.08 −2.6% Decline
April 30, 2020 $186.72 $184.36 −1.3% Decline
February 25, 2020 $226.47 $228.23 0.8% Increase
October 29, 2019 $232.60 $223.26 −4.0% Decline

Fundamentals And Technical Analysis

Public Storage is currently trading at $230.66/share, down −1.7% for the day. The company is trading at approximately 96.2% of its 52-week high of $239.40/share. The company’s stock price is up 17.6% since the last earnings report and down −1.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 56.81 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:PSA Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 32.84 and a forward P/E multiple of 34.33.

Public Storage’s current share price also implies a price-to-book (P/B) multiple of 8.29. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $230.66
P/E Ratio 32.8x
P/E Ratio (Fwd) 34.3x
PEG Ratio −2.0
Total Debt / Total Capital 5.1%
Levered Free Cash Flow $2.055 billion
EV / EBITDA 22.2x

Finbox

Public Storage is a large-cap stock with a market capitalization of $41.01 billion and a total enterprise value of $46.847 billion. The company operates in the Real Estate sector and the Equity Real Estate Investment Trusts (REITs) industry.

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At June 30, 2020, we had: (i) interests in 2,500 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 238 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at June 30, 2020. Our headquarters are located in Glendale, California.

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.

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