Boston, MA 10/31/2013 (wallstreetpr) – As a real estate investment trust (REIT), Digital Realty Trust, Inc. (NYSE:DLR) owns, develops manages tech-related real estate. In recent times, the company has not been at its best. The company has received several rating downgrades lately, with the very latest coming from Raymond James that has cut its rating on the stock from outperform to market perform.
Apparently, Digital Realty’s guidance is part of its undoing. Although the company seems to have some hidden energy, presently its weaknesses are overwhelming and they could chock is upward movement further. At the Wednesday’s trading, the company’s shares continued their downward trending, losing with wider margins of more than 15% from the previous close. Considering its strengths and weaknesses in the current position, the real estate company does have chances to rebound, but short-term gains are seemingly unattainable.
In the Q3 data released Wednesday, October 30, the company earned $1.16 per share, missing the Wall Street estimate of $1.21 by $0.05 for the quarter. Its revenue came in $379.46 million, emerging top of the analysts’ consensus estimate of $378.90 million. In the comparable quarter a year ago, the company reported earning of $1.13 per share. Compared against a year earlier, Digital Realty’s revenue rose 10.8%. In the full-year data, Wall Street is looking for $4.79 in earnings per share. Digital Realty announced $0.78 cash dividend payout to investors of record on Friday, December 13. The dividend payout date has been given as January 15’14. The declared dividend represents $3.12 in annualized basis and 5.38 dividend yield.
Digital Realty’s narrow forecast for the year seems not to have gone down well with investors. The sell off wave of the company’s stock reached peak figures where it exchanged more than eight-times its daily average on Wednesday. The company now has $6.26 billion in market value. But even as hemorrhage seems to be the order of the day at the browsers, polled analysts have a consensus hold on stock and the price target of $69.85.
