Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report fourth-quarter and full-year 2023 earnings results on Feb 21 before the opening bell. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and funds from operations (FFO) per share.
In the last reported quarter, this real estate investment trust (REIT), which acquires and develops net-leased hospital facilities, posted a normalized FFO per share of 38 cents, beating the Zacks Consensus Estimate by 8.57%.
Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on two occasions for as many in-line performances, with the average surprise being 8.72%. This is depicted in the graph below:
Factors at Play
Medical Properties owns a premium acute care portfolio and is poised to benefit from its adoption of a disciplined capital allocation strategy. However, a rise in interest expenses in a high interest rate environment and exposure to certain troubled operators are anticipated to have cast a pall on the company’s quarterly performance to some extent.
The Zacks Consensus Estimate for fourth-quarter rent billed is pegged at $187.14 million, suggesting a decline from the prior quarter’s $229.31 million and the year-ago period’s $231.85 million.
The consensus estimate for income from financing leases stands at $18.76 million, suggesting a decline from $26.07 million in the prior quarter and $48.92 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $235.38 million, implying a 38.14% fall from the prior-year quarter’s reported figure.
Medical Properties’ activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly normalized FFO per share has been revised 22.9% downward to 27 cents over the past two months. Also, the figure implies a year-over-year fall of 37.21%.
For 2023, MPW expected normalized FFO per share in the range of $1.56-$1.58.
For the full year, the Zacks Consensus Estimate for normalized FFO per share is pegged at $1.50. The figure indicates a 17.58% decrease year over year based on a 26.58% year-over-year fall in revenues to $1.13 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Medical Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Medical Properties currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 6.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and American Homes 4 Rent (AMH - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Extra Space Storage, scheduled to report quarterly numbers on Feb 27, has an Earnings ESP of +1.08% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Homes 4 Rent, slated to release quarterly numbers on Feb 22, has an Earnings ESP of +1.68% and carries a Zacks Rank of 3 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report fourth-quarter and full-year 2023 earnings results on Feb 21 before the opening bell. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and funds from operations (FFO) per share.
In the last reported quarter, this real estate investment trust (REIT), which acquires and develops net-leased hospital facilities, posted a normalized FFO per share of 38 cents, beating the Zacks Consensus Estimate by 8.57%.
Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on two occasions for as many in-line performances, with the average surprise being 8.72%. This is depicted in the graph below:
Factors at Play
Medical Properties owns a premium acute care portfolio and is poised to benefit from its adoption of a disciplined capital allocation strategy. However, a rise in interest expenses in a high interest rate environment and exposure to certain troubled operators are anticipated to have cast a pall on the company’s quarterly performance to some extent.
The Zacks Consensus Estimate for fourth-quarter rent billed is pegged at $187.14 million, suggesting a decline from the prior quarter’s $229.31 million and the year-ago period’s $231.85 million.
The consensus estimate for income from financing leases stands at $18.76 million, suggesting a decline from $26.07 million in the prior quarter and $48.92 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $235.38 million, implying a 38.14% fall from the prior-year quarter’s reported figure.
Medical Properties’ activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly normalized FFO per share has been revised 22.9% downward to 27 cents over the past two months. Also, the figure implies a year-over-year fall of 37.21%.
For 2023, MPW expected normalized FFO per share in the range of $1.56-$1.58.
For the full year, the Zacks Consensus Estimate for normalized FFO per share is pegged at $1.50. The figure indicates a 17.58% decrease year over year based on a 26.58% year-over-year fall in revenues to $1.13 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Medical Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Medical Properties currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 6.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and American Homes 4 Rent (AMH - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Extra Space Storage, scheduled to report quarterly numbers on Feb 27, has an Earnings ESP of +1.08% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Homes 4 Rent, slated to release quarterly numbers on Feb 22, has an Earnings ESP of +1.68% and carries a Zacks Rank of 3 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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