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Have you been eager to see how HCP Inc. (HCP - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Irvine, California-based healthcare real estate investment trust’s (REIT) earnings release this morning:
A FFO Beat
HCP came out with adjusted funds from operations (FFO) of 72 cents per share, beating the Zacks Consensus Estimate of 71 cents.
Results were driven by better-than-expected growth in revenues.
How Was the Earnings Surprise Trend?
HCP has a decent surprise history. Before posting a FFO beat in Q3, the company delivered a positive surprise in three out of prior four quarters and in-line results in the other occasion, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.39% in the trailing four quarters.
HCP posted revenues of $654.3 million, which beat the Zacks Consensus Estimate of $624 million. However, it compared unfavorably with the year-ago number of $657.5 million.
Key Developments to Note
HCP completed the spin-off of Quality Care Properties, Inc. (QCP) on Oct 31, 2016. The company also entered into definitive deals for selling 64 communities triple-net leased to Brookdale Senior Living, Inc. for $1.125 billion.
HCP expects full-year 2016 adjusted FFO per share in a range of $2.69–$2.75. This reflects the QCP spin-off accomplished recently. The company anticipates 2016 same property portfolio cash net operating income growth, excluding QCP, in a range of 2.75– 3.75%.
For 2017, the company anticipates adjusted FFO per share of $1.89–$1.95.
What Zacks Rank Says
HCP currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Check back later for our full write up on this HCP earnings report later!
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HCP Inc. (HCP) Q3 FFO and Revenues Beat Estimates
Have you been eager to see how HCP Inc. (HCP - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Irvine, California-based healthcare real estate investment trust’s (REIT) earnings release this morning:
A FFO Beat
HCP came out with adjusted funds from operations (FFO) of 72 cents per share, beating the Zacks Consensus Estimate of 71 cents.
Results were driven by better-than-expected growth in revenues.
How Was the Earnings Surprise Trend?
HCP has a decent surprise history. Before posting a FFO beat in Q3, the company delivered a positive surprise in three out of prior four quarters and in-line results in the other occasion, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.39% in the trailing four quarters.
HCP INC Price and EPS Surprise
HCP INC Price and EPS Surprise | HCP INC Quote
Revenue Came Higher Than Expected
HCP posted revenues of $654.3 million, which beat the Zacks Consensus Estimate of $624 million. However, it compared unfavorably with the year-ago number of $657.5 million.
Key Developments to Note
HCP completed the spin-off of Quality Care Properties, Inc. (QCP) on Oct 31, 2016. The company also entered into definitive deals for selling 64 communities triple-net leased to Brookdale Senior Living, Inc. for $1.125 billion.
HCP expects full-year 2016 adjusted FFO per share in a range of $2.69–$2.75. This reflects the QCP spin-off accomplished recently. The company anticipates 2016 same property portfolio cash net operating income growth, excluding QCP, in a range of 2.75– 3.75%.
For 2017, the company anticipates adjusted FFO per share of $1.89–$1.95.
What Zacks Rank Says
HCP currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Check back later for our full write up on this HCP earnings report later!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>