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Key Factors to Impact Medical Properties' (MPW) Q3 Earnings
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Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report third-quarter 2022 results on Oct 27 before market open. The company’s quarterly performance is likely to have witnessed year-over-year growth in funds from operations (FFO) per share and also a marginal increase in revenues.
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 46 cents. This was 2.2% ahead of the Zacks Consensus Estimate.
Over the trailing four quarters, the company beat the Zacks Consensus Estimate on two occasions and met the same on the other two, the average beat being 1.10%. This is depicted in the graph below:
Medical Properties Trust, Inc. Price and EPS Surprise
Let’s see how things are shaping up before this announcement.
Factors to Note
In the third quarter, MPT is anticipated to have benefited from its premium acute care portfolio, aided by strong operator relationships. Also, its acquisition efforts are expected to have provided support.
Further, in the third quarter, MPW announced a successful operator transition at Watsonville Community Hospital in Watsonville, CA to Pajaro Valley Health Care District Corporation. Moreover, in early September, MPT sold to Prime nine general acute hospitals and two related medical office buildings in California, Indiana, Nevada and Pennsylvania for net proceeds of around $360 million.
The Zacks Consensus Estimate for the rent billed is pegged at $257 million for the third quarter of 2022, suggesting an improvement from the prior quarter’s $241 million and an increase from the year-ago period’s $242 million.
The straight-line rent is estimated at $59 million, calling for no change sequentially but down from the $65 million reported in the year-ago period.
The consensus estimate for income from financing leases stands at $52 million, suggesting no growth from the prior quarter and a marginal increase from the $51 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $390.94 million. This suggests a marginal increase from the year-earlier quarter’s reported tally.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s FFO per share has remained unrevised at 45 cents over the past month. However, it suggests year-over-year growth of 2.27%.
Here Is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of FFO per share for MPW 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 the case here.
MPT currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are some other stocks from the REIT sector — Extra Space Storage Inc. (EXR - Free Report) , Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these also have the right combination of elements to report a surprise this quarter.
Public Storage, slated to release quarterly numbers on Nov 1, has an Earnings ESP of +1.34% and carries a Zacks Rank of 3 at present.
SBA Communications Corporation, scheduled to report quarterly numbers on Oct 31, currently has an Earnings ESP of +0.44% and carries a Zacks Rank of 3.
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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Key Factors to Impact Medical Properties' (MPW) Q3 Earnings
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report third-quarter 2022 results on Oct 27 before market open. The company’s quarterly performance is likely to have witnessed year-over-year growth in funds from operations (FFO) per share and also a marginal increase in revenues.
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 46 cents. This was 2.2% ahead of the Zacks Consensus Estimate.
Over the trailing four quarters, the company beat the Zacks Consensus Estimate on two occasions and met the same on the other two, the average beat being 1.10%. This is depicted in the graph below:
Medical Properties Trust, Inc. Price and EPS Surprise
Medical Properties Trust, Inc. price-eps-surprise | Medical Properties Trust, Inc. Quote
Let’s see how things are shaping up before this announcement.
Factors to Note
In the third quarter, MPT is anticipated to have benefited from its premium acute care portfolio, aided by strong operator relationships. Also, its acquisition efforts are expected to have provided support.
Further, in the third quarter, MPW announced a successful operator transition at Watsonville Community Hospital in Watsonville, CA to Pajaro Valley Health Care District Corporation. Moreover, in early September, MPT sold to Prime nine general acute hospitals and two related medical office buildings in California, Indiana, Nevada and Pennsylvania for net proceeds of around $360 million.
The Zacks Consensus Estimate for the rent billed is pegged at $257 million for the third quarter of 2022, suggesting an improvement from the prior quarter’s $241 million and an increase from the year-ago period’s $242 million.
The straight-line rent is estimated at $59 million, calling for no change sequentially but down from the $65 million reported in the year-ago period.
The consensus estimate for income from financing leases stands at $52 million, suggesting no growth from the prior quarter and a marginal increase from the $51 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $390.94 million. This suggests a marginal increase from the year-earlier quarter’s reported tally.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s FFO per share has remained unrevised at 45 cents over the past month. However, it suggests year-over-year growth of 2.27%.
Here Is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of FFO per share for MPW 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 the case here.
MPT currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are some other stocks from the REIT sector — Extra Space Storage Inc. (EXR - Free Report) , Public Storage (PSA - Free Report) and SBA Communications Corporation (SBAC - Free Report) — that you may want to consider as our model shows that these also have the right combination of elements to report a surprise this quarter.
Extra Space Storage, scheduled to report third-quarter earnings on Nov 1, currently has an Earnings ESP of +1.31% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Public Storage, slated to release quarterly numbers on Nov 1, has an Earnings ESP of +1.34% and carries a Zacks Rank of 3 at present.
SBA Communications Corporation, scheduled to report quarterly numbers on Oct 31, currently has an Earnings ESP of +0.44% and carries a Zacks Rank of 3.
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.