A Look at Digital Realty Trust's Upcoming Earnings Report

Digital Realty Trust DLR is set to give its latest quarterly earnings report on Thursday, 2025-04-24. Here's what investors need to know before the announcement.

Analysts estimate that Digital Realty Trust will report an earnings per share (EPS) of $1.72.

Anticipation surrounds Digital Realty Trust's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.04, leading to a 0.32% drop in the share price on the subsequent day.

Here's a look at Digital Realty Trust's past performance and the resulting price change:

Market Performance of Digital Realty Trust's Stock

Shares of Digital Realty Trust were trading at $148.89 as of April 22. Over the last 52-week period, shares are up 10.06%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Digital Realty Trust

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Digital Realty Trust.

The consensus rating for Digital Realty Trust is Outperform, derived from 13 analyst ratings. An average one-year price target of $196.31 implies a potential 31.85% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Crown Castle, VICI Properties and Extra Space Storage, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Crown Castle, with an average 1-year price target of $109.94, suggesting a potential 26.16% downside.
• Analysts currently favor an Outperform trajectory for VICI Properties, with an average 1-year price target of $34.78, suggesting a potential 76.64% downside.
• Analysts currently favor an Neutral trajectory for Extra Space Storage, with an average 1-year price target of $160.67, suggesting a potential 7.91% upside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Crown Castle, VICI Properties and Extra Space Storage are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Digital Realty Trust ranks highest in Revenue Growth and Gross Profit among its peers. It also has the highest Return on Equity.

About Digital Realty Trust

Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. The company operates as a real estate investment trust.

Key Indicators: Digital Realty Trust's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Digital Realty Trust displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 4.84%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: Digital Realty Trust's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 12.49%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Digital Realty Trust's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.87%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Digital Realty Trust's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.4%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.87, Digital Realty Trust adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Digital Realty Trust visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.