Shares of Lineage (LINE) plummeted 5.59% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. Despite beating earnings per share estimates, the company's revenue fell short of expectations, leading to a significant sell-off.
Lineage reported Q1 adjusted funds from operations (AFFO) of $0.86 per diluted share, up from $0.81 a year earlier and surpassing the FactSet analyst consensus of $0.83. However, the company's net revenue for the quarter ended March 31 was $1.29 billion, down from $1.33 billion a year earlier and below the $1.34 billion analysts had expected. This 3.49% revenue miss appears to have overshadowed the positive earnings surprise.
Adding to investor concerns, Lineage maintained its 2025 guidance, forecasting AFFO of $3.40 to $3.60 per share, in line with analysts' expectations of $3.49. The company's decision not to raise guidance despite the Q1 earnings beat may have disappointed some investors hoping for an improved outlook. In a separate announcement, Lineage revealed plans to acquire four warehouses from Tyson for $247 million, which could potentially impact future performance but did not seem to offset the negative sentiment surrounding the earnings report.
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