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Ventas (VTR) Q2 FFO and Revenues Beat Estimates

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Have you been eager to see how Ventas, Inc. (VTR - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Chicago, IL-based healthcare real estate investment trust (REIT) earnings release this morning:

A FFO Beat

Ventas came out with normalized funds from operations (“FFO”) per share of $1.06, beating the Zacks Consensus Estimate of $1.05.  

Results reflect improved property performance and accretive investments.

How Was the Earnings Surprise Trend?

Ventas has a mixed surprise history. Before posting the Q2 FFO beat, the company delivered positive surprises in two of the trailing four quarters. In the other two occasions, the company posted in-line results. This is depicted in the graph below:

Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.99% in the trailing four quarters.

Ventas, Inc. Price and EPS Surprise
 

Ventas, Inc. Price and EPS Surprise | Ventas, Inc. Quote

Note: The EPS numbers presented in the above chart represent funds from operations (“FFO”) per share.

Revenues Came In Higher Than Expected

Ventas posted revenues of $895.5 million, which beat the Zacks Consensus Estimate of $878.8 million. Further, it compared favorably with the year-ago number of $848.4 million.

Key Developments to Note

During the quarter, Ventas funded investments of around $110 million. Also, the company improved its financial strength.

The company reaffirmed its outlook and expects its 2017 normalized FFO per share in the range of $4.12 – $4.18. Also, the company anticipates same-store cash net operating income growth of 1.5–2.5% in 2017.

What Zacks Rank Says

Ventas has a Zacks Rank #3 (Hold). 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.)

Check back later for our full write up on this VTR earnings report later!

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.

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