Simon Property Group Increases Sales but Misses Estimates on Earnings

Simon Property Group (NYSE: SPG  ) reported earnings on Feb. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Simon Property Group beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.

Gross margins increased, operating margins dropped, and net margins expanded.

Revenue details
Simon Property Group reported revenue of $1.17 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $1.14 billion. Sales were 4.6% higher than the prior-year quarter's $1.12 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.81. The five earnings estimates compiled by S&P Capital IQ predicted $0.91 per share on the same basis. GAAP EPS of $1.24 for Q4 were 68% higher than the prior-year quarter's $0.74 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 79.7%, 50 basis points better than the prior-year quarter. Operating margin was 45.5%, 10 basis points worse than the prior-year quarter. Net margin was 31.1%, 1,160 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $4.53 billion. The average EPS estimate is $3.32.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 282 members out of 658 rating the stock outperform, and 376 members rating it underperform. Among 214 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Simon Property Group a green thumbs-up, and 119 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Simon Property Group is outperform, with an average price target of $132.06.

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