We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in Store for Medical Properties (MPW) in Q3 Earnings?
Read MoreHide Full Article
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report third-quarter 2023 results on Oct 26, 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 normalized FFO per share of 48 cents, beating the Zacks Consensus Estimate by 26.32%.
Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on one occasion and met the same in the remaining three, with the average being 6.58%. This is depicted in the graph below:
Medical Properties Trust, Inc. Price and EPS Surprise
Medical Properties owns a premium acute care portfolio, which is likely to have benefited from the favorable operating trends of the healthcare industry on the back of an aging population, growing consumer demand and expanded medical service offerings. Its reliable, sustainable and inflation-protected cash-based business model is expected to have supported decent cashflow generation during the third quarter.
Also, MPW’s portfolio diversification efforts with respect to the operator and gains from past accretive acquisitions are likely to have driven its quarterly performance.
Further, the adoption of a disciplined capital allocation strategy aimed at fortifying its balance sheet strength, lowering the cost of capital and aiding long-term shareholder value creation are likely to have given MPW an edge.
Nonetheless, a rise in interest expenses amid 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.
Q3 Projections
The Zacks Consensus Estimate for third-quarter rent billed is pegged at $248.5 million, suggesting an increase from the prior quarter’s $247.5 million and the year-ago period’s $232.4 million.
Straight-line rent is estimated at $55.3 million, up from $39.3 million reported in the prior quarter and $26.6 million in the year-ago period.
The consensus estimate for income from financing leases stands at $11.66 million, suggesting a decline from $51.01 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $346.5 million, implying a 1.7% 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 FFO per share has been revised 2.8% downward to 35 cents over the past month. Also, the figure implies a year-over-year fall of 22.2%.
Earnings Whispers
Our proven model predicts a surprise in terms of FFO per share for Medical Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. That is just the case here.
Earnings ESP: MPW has an Earnings ESP of +2.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks that are worth considering from the REIT sector, as our model shows that these, too, have the right combination of elements to deliver a surprise this reporting cycle:
Digital Realty Trust (DLR - Free Report) is scheduled to report quarterly figures on Oct 26. DLR has an Earnings ESP of +2.40% and a Zacks Rank #3 currently.
American Tower (AMT - Free Report) is slated to report quarterly numbers on Oct 26. AMT has an Earnings ESP of +0.59% and carries a Zacks Rank #3 presently.
SBA Communications (SBAC - Free Report) is slated to report quarterly numbers on Nov 2. SBAC has an Earnings ESP of +0.27% and carries a Zacks Rank #3 presently.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is a Beat in Store for Medical Properties (MPW) in Q3 Earnings?
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report third-quarter 2023 results on Oct 26, 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 normalized FFO per share of 48 cents, beating the Zacks Consensus Estimate by 26.32%.
Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on one occasion and met the same in the remaining three, with the average being 6.58%. 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
Factors at Play
Medical Properties owns a premium acute care portfolio, which is likely to have benefited from the favorable operating trends of the healthcare industry on the back of an aging population, growing consumer demand and expanded medical service offerings. Its reliable, sustainable and inflation-protected cash-based business model is expected to have supported decent cashflow generation during the third quarter.
Also, MPW’s portfolio diversification efforts with respect to the operator and gains from past accretive acquisitions are likely to have driven its quarterly performance.
Further, the adoption of a disciplined capital allocation strategy aimed at fortifying its balance sheet strength, lowering the cost of capital and aiding long-term shareholder value creation are likely to have given MPW an edge.
Nonetheless, a rise in interest expenses amid 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.
Q3 Projections
The Zacks Consensus Estimate for third-quarter rent billed is pegged at $248.5 million, suggesting an increase from the prior quarter’s $247.5 million and the year-ago period’s $232.4 million.
Straight-line rent is estimated at $55.3 million, up from $39.3 million reported in the prior quarter and $26.6 million in the year-ago period.
The consensus estimate for income from financing leases stands at $11.66 million, suggesting a decline from $51.01 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $346.5 million, implying a 1.7% 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 FFO per share has been revised 2.8% downward to 35 cents over the past month. Also, the figure implies a year-over-year fall of 22.2%.
Earnings Whispers
Our proven model predicts a surprise in terms of FFO per share for Medical Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. That is just the case here.
Earnings ESP: MPW has an Earnings ESP of +2.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MPW currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks That Warrant a Look
Here are some stocks that are worth considering from the REIT sector, as our model shows that these, too, have the right combination of elements to deliver a surprise this reporting cycle:
Digital Realty Trust (DLR - Free Report) is scheduled to report quarterly figures on Oct 26. DLR has an Earnings ESP of +2.40% and a Zacks Rank #3 currently.
American Tower (AMT - Free Report) is slated to report quarterly numbers on Oct 26. AMT has an Earnings ESP of +0.59% and carries a Zacks Rank #3 presently.
SBA Communications (SBAC - Free Report) is slated to report quarterly numbers on Nov 2. SBAC has an Earnings ESP of +0.27% and carries a Zacks Rank #3 presently.
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.