Boston, MA 04/30/2014 (wallstreetpr) – Although it incurred higher expenses in the latest reported quarter, Extra Space Storage, Inc. (NYSE:EXR) managed to beat Wall Street estimates. The company reported revenue and earnings figures that exceeded expectations and expects to continue reporting beating results in the current fiscal.
The company anticipates fiscal 2014 earnings between $2.41 and $2.49 per share. That compares with the estimate of $2.43 per share according to analysts polled by Thomson Reuters.
Q1 earnings summary
Earnings in Q12014 were impacted by higher expenses related to the harsh winter. The expenses mostly came in the form of snow removal costs and higher utility usage during the cold months. However, with such challenges behind, the future looks promising, and the company expects shareholders will have every reason to celebrate for their position in the stock.
The company reported earnings per share of 57 cents in the latest quarter, exceeding 55 cents that Wall Street was looking for in the quarter. Revenue came in at $152.2 million, ahead of $142.9 million that analysts estimated. In the comparable quarter a year ago, the company earned 46 cents per share and revenue in the recent quarter was up about 28 percent above the year-ago figure.
According to Extra Space Storage, Inc. (NYSE:EXR) CEO Spencer F. Kirk, the quarter witnessed encouraging rental activity in most of the markets served, and the trend is expected to continue as rental peak season draws. The CEO also observed that, despite the competition in the market, the company managed to undertake acquisitions that place it on the winning path.
The company, during the quarter, acquired 21 properties at an approximate cost of $250 million.
Beating competition
Extra Space Storage, Inc. (NYSE:EXR) has various strategies to beat competition. In the latest quarter, the company experienced increase in occupancy due to its higher rates that applied to new and existing customers. Moreover, the company observed lower rental rates discounts for new customers. Therefore, revenue was able to grow significantly in the quarter against a year ago, and despite the hard weather.
