Market Overview

Extra Space Storage Grows to All-Time High on Cushy Earnings, Comfy Guidance

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Extra Space Storage (NYSE: EXR) has kicked the week off with great news for its shareholders, reaching a record-high on a successful first quarter and strong guidance.

The Salt Lake City-based firm's EPS rose 39.4 percent to $0.46, topping estimates of $0.44.

Revenue jumped 34 percent to $113.14 million, edging the Wall Street consensus of $112.71 million.

Cushy Non Same-Store Sales

Extra Space Storage's non same-store sales grew a whopping 311 percent during the quarter.

Meanwhile, same-store sales rose a healthy 7.5 percent.

Markets with revenue growth above the portfolio average included Chicago, Cincinnati, Denver, Los Angeles and San Diego. Those below average included Phoenix, Sacramento and Washington, DC.

Room to Grow

During the first quarter, the property management firm acquired two properties for approximately $12.9 million. The respective locations are in Illinois and Maryland.

And, it added 55 properties to its management program during the quarter, totaling 236. Including joint ventures, Extra Space Storage has 515 properties under management.

Additionally, the company has five other properties under contract in Hawaii, Maryland, North Carolina and Texas. The deals are subject to due diligence and other customary closing conditions. Valued at around $53.6 million, the purchases are expected to close by the end of the second quarter.

Rating Changes

In January, ISI Group downgraded Extra Space Storage from Buy to Neutral. During the same month, Wells Fargo (NYSE: WFC) upgraded the stock from Market Perform to Outperform.

Then, in February, UBS (NYSE: UBS) downgraded the company from Neutral to Sell.

Comfy Guidance

Extra Space Storage expects second-quarter EPS to close in the $0.47 to $0.49 range, which would meet or beat expectations of $0.47.

The company's full-year EPS projections look good, as well, at $1.94 to $2.01. Even at the low end, it would surpass estimates of $1.91 per share.

As for same-store sales, the company expects growth of 5.5 to 6.5 percent.

All-Time High

The company's successful first quarter and strong guidance have sent it to a record high as the week begins. Its stock has soared above $42.50 in the morning hours of trading.

Extra Space Storage is up about 1.5 percent on Monday.

Posted-In: ISI GroupEarnings News Guidance Best of Benzinga

 

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