HCP Q3 FFO and Revenues Beat Estimates

Zacks

Have you been eager to see how HCP Inc. HCP performed in Q3 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 78 cents.

Results reflect growth in top line.

How Was the Earnings Surprise Trend?

HCP has a decent earnings surprise history. Before posting an earnings beat in Q3, the company delivered a positive surprise in the prior quarter. Over the trailing four quarters, the company has surpassed the Zacks Consensus Estimate in three quarters, and delivered an average surprise of 1.63%.

Revenue Came In Higher Than Expected

HCP posted revenues of $658.0 million, which significantly beat the Zacks Consensus Estimate of $582 million. It also compared favorably with the year-ago number of $596.6 million.

Key Developments to Note:

For 2015, HCP updated its FFO as adjusted per share guidance to $3.12–$3.18.

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.

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.

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