Have you been eager to see how HCP Inc. (HCP) performed in Q4 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 adjusted funds from operations (FFO) of 79 cents per share, beating the Zacks Consensus Estimate of 77 cents.
Same-property portfolio cash net operating income (NOI) growth of 3.5% year-over-year, primarily drove this earnings beat.
How Was the Earnings Surprise Trend?
HCP has a mixed earnings surprise history. Before posting an earnings beat in Q4, the company delivered a negative surprise in the prior quarter. But, overall, the company surpassed the Zacks Consensus Estimate by an average of 0.68% in the trailing four quarters.
Revenue Came In Higher Than Expected
HCP posted revenues of $603.5 million, which significantly beat the Zacks Consensus Estimate of $558 million. It also compared favorably with the year-ago number of $530.3 million.
Key Developments to Note:
HCP accomplished $813 million of investment transactions in Q4. Further, for 2015, HCP expects its FFO as adjusted per share to range between $3.15 and $3.21, denoting a growth of 5%. The company guides for full year same property portfolio cash NOI growth of 2.75% – 3.75%.
What Zacks Rank Says
HCP currently 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.
How the Market Reacted So Far
Following the earnings release, HCP shares were up around 0.8% in the pre-trading session. This is contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this HCP 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment