Digital Realty's Mixed Q4 Results Affecting Stock Outlook

Digital Realty Trust delivers mixed Q4 results, affecting stock outlook. Despite exceeding core FFO estimates, revenue fell short of expectations, indicating potential stock price volatility.

Date: 13-03-2025

AI Rating: 5

Earnings and Revenue Insights: Digital Realty Trust, Inc. (DLR) reported a core FFO (Funds From Operations) of $1.73 per share, which exceeded estimates. However, the company missed revenue expectations of $1.4 billion, which may negatively impact investor confidence.

Performance Trends: The stock has underperformed, falling 25.7% from its 52-week high and 21.5% over the last three months, compared to the Real Estate Select Sector SPDR Fund, which saw a decline of only 3.3%. This underperformance could deter new investors and is likely to weigh on stock prices.

Core FFO and Forecast: Looking ahead, DLR expects Core FFO per share to be between $7.05 and $7.15. This positive forward-looking statement could provide some support to the stock but may not fully alleviate concerns over the recent revenue miss.

Analyst Sentiment: Analysts have given the stock a consensus rating of “Moderate Buy,” indicating a somewhat optimistic outlook despite the current challenges. The stock's current trading position below the mean price target of $187.50 may indicate potential for upside if the company can align its future performance with expectations.

Stocks: DLR EQIX