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What's in the Cards for Medical Properties (MPW) in Q2 Earnings?
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Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report second-quarter 2024 earnings results on Aug 8, 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 a normalized FFO per share of 24 cents, missing the Zacks Consensus Estimate by 4%.
Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on three occasions and missed once, with the average surprise being 16.1%. 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.
Further, the adoption of a disciplined capital allocation strategy aimed at fortifying its balance sheet strength is likely to have given MPW an edge.
However, elevated interest expenses in 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.
The Zacks Consensus Estimate for second-quarter rent billed is pegged at $191.1 million, suggesting a decline from $199.3 million reported in the prior quarter and $247.5 million in the year-ago period.
The consensus estimate for income from financing leases stands at $16.4 million, suggesting a fall from $68.5 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $258.4 million, implying a 23.4% 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 normalized FFO per share has remained unrevised at 21 cents over the past month. The figure implies a year-over-year fall of 56.3%.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for Medical Properties 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 not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Performance of Other Healthcare REITs
Ventas, Inc. (VTR - Free Report) reported second-quarter 2024 normalized funds from operations (FFO) per share of 80 cents, which surpassed the Zacks Consensus Estimate of 79 cents. The reported figure increased 6.7% from the prior-year quarter’s tally.
Results reflected growth in occupancy in the same-store senior housing operating portfolio contributing to higher revenue generation. VTR has improved its 2024 outlook.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflected better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. DOC also revised its 2024 outlook.
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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What's in the Cards for Medical Properties (MPW) in Q2 Earnings?
Medical Properties Trust, Inc. (MPW - Free Report) — also known as MPT — is scheduled to report second-quarter 2024 earnings results on Aug 8, 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 a normalized FFO per share of 24 cents, missing the Zacks Consensus Estimate by 4%.
Over the trailing four quarters, MPT beat the Zacks Consensus Estimate on three occasions and missed once, with the average surprise being 16.1%. 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.
Further, the adoption of a disciplined capital allocation strategy aimed at fortifying its balance sheet strength is likely to have given MPW an edge.
However, elevated interest expenses in 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.
The Zacks Consensus Estimate for second-quarter rent billed is pegged at $191.1 million, suggesting a decline from $199.3 million reported in the prior quarter and $247.5 million in the year-ago period.
The consensus estimate for income from financing leases stands at $16.4 million, suggesting a fall from $68.5 million reported in the year-ago quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $258.4 million, implying a 23.4% 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 normalized FFO per share has remained unrevised at 21 cents over the past month. The figure implies a year-over-year fall of 56.3%.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for Medical Properties 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 not the case here.
Medical Properties has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Performance of Other Healthcare REITs
Ventas, Inc. (VTR - Free Report) reported second-quarter 2024 normalized funds from operations (FFO) per share of 80 cents, which surpassed the Zacks Consensus Estimate of 79 cents. The reported figure increased 6.7% from the prior-year quarter’s tally.
Results reflected growth in occupancy in the same-store senior housing operating portfolio contributing to higher revenue generation. VTR has improved its 2024 outlook.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflected better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. DOC also revised its 2024 outlook.
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.