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Ventas (VTR) Down 2.1% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Ventas, Inc. (VTR - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ventas' Q4 FFO In Line, Revenues Surpass Estimates
Ventas reported fourth-quarter 2016 normalized FFO per share of $1.03, in line with the Zacks Consensus Estimate as well as the prior-year quarter figure.
The company posted revenues of $875.7 million in the fourth quarter, which beat the Zacks Consensus Estimate of $843 million. Further, it compared favorably with the year-ago tally of $841.3 million.
Modest NOI Growth
For the fourth quarter, same-store cash net operating income (“NOI”) growth for total portfolio (1,189 assets) was 2.9% on a reported basis. Notably, triple net same-store cash NOI grew 4.5%, the seniors housing operating portfolio same-store NOI increased 1.1% and the medical office building portfolio rose 2.1%.
Notable Portfolio Activity
The company expects to close its $700 million loan commitment to fund Ardent Health Services’ acquisition of LHP Hospital Group late in first-quarter 2017.
In Jan 2017, Ventas sold assets and received final repayment on loans receivable for proceeds of $88 million.
Liquidity
Presently, the company has more than $2 billion available under its revolving credit facility and $286.7 million of cash or cash equivalents in hand.
2017 Outlook
The company has reaffirmed its 2017 outlook. The company anticipates same-store cash NOI growth of 1.5–2.5% in 2017.
Further, Ventas expects dispositions of $900 million in 2017. It intends to use the net proceeds to expand the company’s life science and acute care hospital platforms and for debt repayment.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
At this time, Ventas' stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.
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Ventas (VTR) Down 2.1% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Ventas, Inc. (VTR - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ventas' Q4 FFO In Line, Revenues Surpass Estimates
Ventas reported fourth-quarter 2016 normalized FFO per share of $1.03, in line with the Zacks Consensus Estimate as well as the prior-year quarter figure.
The company posted revenues of $875.7 million in the fourth quarter, which beat the Zacks Consensus Estimate of $843 million. Further, it compared favorably with the year-ago tally of $841.3 million.
Modest NOI Growth
For the fourth quarter, same-store cash net operating income (“NOI”) growth for total portfolio (1,189 assets) was 2.9% on a reported basis. Notably, triple net same-store cash NOI grew 4.5%, the seniors housing operating portfolio same-store NOI increased 1.1% and the medical office building portfolio rose 2.1%.
Notable Portfolio Activity
The company expects to close its $700 million loan commitment to fund Ardent Health Services’ acquisition of LHP Hospital Group late in first-quarter 2017.
In Jan 2017, Ventas sold assets and received final repayment on loans receivable for proceeds of $88 million.
Liquidity
Presently, the company has more than $2 billion available under its revolving credit facility and $286.7 million of cash or cash equivalents in hand.
2017 Outlook
The company has reaffirmed its 2017 outlook. The company anticipates same-store cash NOI growth of 1.5–2.5% in 2017.
Further, Ventas expects dispositions of $900 million in 2017. It intends to use the net proceeds to expand the company’s life science and acute care hospital platforms and for debt repayment.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
Ventas, Inc. Price and Consensus
Ventas, Inc. Price and Consensus | Ventas, Inc. Quote
VGM Scores
At this time, Ventas' stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.