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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 funds from operations (FFO) as adjusted of 48 cents per share, beating the Zacks Consensus Estimate of 46 cents.
Results were driven by growth in three-month same property portfolio (SPP) cash net operating income (NOI).
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 each of the trailing four quarters, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.3% in the trailing four quarters.
Note: The EPS numbers presented in the above chart represent funds from operations (“FFO”) per share.
Revenue Came Higher Than Expected
HCP posted revenues of $454.0 million, which surpassed the Zacks Consensus Estimate of $450.4 million. However, it compared unfavorably with the year-ago number of $530.6 million.
Key Developments to Note
HCP announced that it has entered into transactions that offer a way to lower Brookdale concentration to around 15.7%. The company also disclosed coming back to the Boston life science market with $228 million acquisition of the Hayden Research Campus.
HCP has increased its 2017 FFO as adjusted guidance range and expects it to be in the band of $1.92-$1.96 per share, denoting 2 cents per share increase at the mid-point. Further, the company has reaffirmed aggregate 2017 SPP cash NOI growth guidance in a range of 2.5- 3.5%.
What Zacks Rank Says
HCP currently has a Zacks Rank #4 (Sell). 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: 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!
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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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 funds from operations (FFO) as adjusted of 48 cents per share, beating the Zacks Consensus Estimate of 46 cents.
Results were driven by growth in three-month same property portfolio (SPP) cash net operating income (NOI).
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 each of the trailing four quarters, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.3% in the trailing four quarters.
HCP, Inc. Price and EPS Surprise
HCP, Inc. Price and EPS Surprise | HCP, Inc. Quote
Note: The EPS numbers presented in the above chart represent funds from operations (“FFO”) per share.
Revenue Came Higher Than Expected
HCP posted revenues of $454.0 million, which surpassed the Zacks Consensus Estimate of $450.4 million. However, it compared unfavorably with the year-ago number of $530.6 million.
Key Developments to Note
HCP announced that it has entered into transactions that offer a way to lower Brookdale concentration to around 15.7%. The company also disclosed coming back to the Boston life science market with $228 million acquisition of the Hayden Research Campus.
HCP has increased its 2017 FFO as adjusted guidance range and expects it to be in the band of $1.92-$1.96 per share, denoting 2 cents per share increase at the mid-point. Further, the company has reaffirmed aggregate 2017 SPP cash NOI growth guidance in a range of 2.5- 3.5%.
What Zacks Rank Says
HCP currently has a Zacks Rank #4 (Sell). 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: 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!
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>