May. 8 at 6:02 PM
$MAC Heads up alert! Upcoming earnings on Monday, 5/12/2025 for
$MAC
Neutral (5.0)
In assessing Macerich (MAC), we observe a number of key financial metrics and qualitative factors that influence the investment landscape for this REIT.
The company has been focusing on its portfolio of premium shopping centers and mixed-use developments, which have shown resilience in the face of e-commerce growth.
Currently, MAC's price-to-earnings (P/E) ratio stands at approximately 40.2, significantly higher than the industry average of around 25.
This elevated P/E ratio may reflect high investor expectations, but it also raises concerns about valuation sustainability.
Additionally, earnings per share (EPS) growth has been modest, with recent estimates projecting a 4.5% increase over the next fiscal year, compared to the industry’s average growth rate of about 6%.
Revenue forecasts for the coming quarter are expected to show slight improvement, driven by strategic adjustments and a focus on omnichannel retailing, although recent price target reductions—most notably from Truist, which lowered its target from
$23 to
$19—indicate caution among analysts.
The company has recently declared a quarterly dividend of
$0.17 per share, a move that reflects its commitment to returning value to shareholders, yet raises questions about sustainability given its high payout ratio.
Macerich is also noted for insider buying activity, suggesting confidence from management in the company’s future prospects.
However, the broader market conditions, including a recent downturn in technology shares, contribute to an uncertain outlook.
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Looking ahead to the upcoming earnings report scheduled for May 12, 2025, analysts are keenly focused on not just the top-line revenue and EPS figures, but also on operational metrics such as same-store sales growth and occupancy rates, which are critical in assessing the health of the retail real estate market.
Historical performance data indicates that MAC has often exceeded earnings expectations in previous quarters, providing a slight bullish sentiment; however, analysts currently hold a mixed consensus with estimates suggesting a cautious approach.
The market is anticipating a modest revenue increase of around 3% year-over-year, alongside an EPS of approximately
$0.15, which aligns with the conservative outlook reflected in recent price target adjustments.
The anticipated conference call will likely offer further insights into management’s strategies to navigate the evolving retail landscape, particularly concerning competition from online retailers.
The results of this quarter could significantly impact market sentiment, given the current valuation and operational challenges facing the sector.
- Funds were net buyers of
$MAC during the previous reporting quarter.
- Top 2 funds with large holdings in
$MAC:
* GEM Realty Capital Inc
$23MM. New position. CGMFundRank: 60%, Fund Website: www.gemrc.com
* Balyasny Asset Management LLC
$2MM. CGMFundRank: 91%, Fund Website: www.bamfunds.com
- Last 10 days performance: -1%
- Last 30 days performance: 12%
- Last 90 days performance: -28%
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