Here’s what to expect from Prologis’ next financial results…

Prologis, Inc. (PLD) is a San Francisco-based logistics real estate company. With a market capitalization of $104.9 billion, Prologis is a global leader in its industry, focused on high-barrier, high-growth markets. The company leases logistics facilities to a diverse customer base in the B2B and retail/online fulfillment categories. The real estate giant is expected to report its fiscal second quarter 2024 earnings before the market opens on Wednesday, July 17.

Ahead of the event, analysts expected Prologis to report earnings of $1.33 per share, down 27.3% from the $1.83 per share reported in the year-ago quarter. The company has topped Wall Street earnings per share estimates twice and met them on two other occasions over the past four quarters. Earnings per share of $1.28 for the last reported quarter met Wall Street estimates. Prologis saw double-digit growth in rental revenue, which led to an increase in overall revenue in the previous quarter.

Analysts forecast Prologis will post earnings per share of $5.42 in fiscal 2024, down 3.4% from earnings per share of $5.61 in fiscal 2023. Earnings per share in fiscal 2025 are expected to increase 12% year over year to $6.07.

PLD shares are down 15% year-over-year, lagging the 16.1% return of the S&P 500 Index ($SPX) and the 4.7% decline of the S&P 500 Real Estate Sector SPDR Index (XLRE) during the same period.

The company has shown impressive resilience in recent months. Despite changing market dynamics, geopolitical tensions, currency fluctuations and high interest rates, it has seen revenue and earnings growth. In the first quarter of 2024, Prologis reported a 10.6% increase in overall revenue, with the rental segment leading the growth with an 11.9% increase in revenue. Despite underperforming the broader market YTD, the company performed well last month, gaining 5.5% and paying a dividend of $0.96 in March and June, which was 10.3% higher than the quarterly dividends from the previous year.

The consensus view on Prologis stock is bullish, with an overall rating of “Strong Buy.” Of the 21 analysts covering the stock, 14 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and five recommend a “Hold.” This setup seems slightly less bullish than three months ago, when there were 15 “Strong Buy” ratings.

The average price target for Prologis shares is $130.72, indicating a potential upside of 15.4% from the current price level.

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On the date of publication, Kritika Sarmah did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.